Definition:People and business concentrate on what
they are best at
Why:People began to realize it was difficult trying to produce everything
themselves as they have different skills
Also,people live in areas where it is easier or more difficult to produce certain products
Importance:Leads to greater efficiency in production and reduces production costs
Benefits to consumers:More goods and services at lower prices
Adding value
Adding value:an action,Added value:end result
Whatever good or service, it will try to add value at every stage of the production process
It does by taking raw materials and turning them into a good or a service which it sells to consumers at a price greater than the cost of the raw materials used in their production
Adding value is one of the most important objectives of business
Added value is NOT the same as profit
Selling price of product-bought in raw-material costs=value added by the business
