Which of the following is a disadvantage of specialisation for countries?

Specialisation refers to the process where countries focus on producing a limited range of goods or services in which they have a comparative advantage. While this practice can lead to numerous benefits, one significant disadvantage is over-dependence on specific goods.

When a country becomes highly specialised, it may rely heavily on the production and export of a few commodities or sectors. This over-reliance can create vulnerabilities, particularly if market demand shifts, prices fluctuate, or if there are disruptions in the supply chain. For example, a country that predominantly exports oil may face economic instability if global oil prices decline or if there's a significant move towards renewable energy sources.

If the specialized sector faces challenges such as technological changes, increased competition, or geopolitical tensions, the entire economy could suffer. Thus, while specialisation can lead to efficiencies and economic benefits, the risk of over-dependence on specific goods poses a significant threat to economic stability and diversification.