An example of a single economy benefiting from specialization could be:

Focusing on farming while relying on imports for technology illustrates the principle of specialization effectively. By concentrating on agricultural production, a single economy can maximize its efficiency and output in that sector. Specialization allows the economy to develop more expertise, use resources more effectively, and increase productivity in farming.

By choosing to import technology, the economy can supplement its agricultural focus with advanced tools and techniques that may not be as efficiently produced domestically. This trade-off enables the economy to harness its comparative advantage in farming while still benefiting from technological advancements in other areas, thereby enhancing overall economic well-being.

In contrast, producing both textiles and electronics would represent a diversification strategy, which does not highlight the benefits of concentrating efforts in one area. Being self-sufficient in all industries tends to spread resources too thinly, reducing the advantages that come with specialization. Limiting industry to one region could have benefits, but without the focus on specialization in one particular sector, it wouldn’t showcase the clear benefits of concentrating on farming as opposed to a broader industrial base.