Imagine that you own a company that sells computer parts.

What challenges of specialization might your company face?

The main materials needed for the computer parts come from overseas.

One way to keep costs down for my company is to raw materials and build parts here.

If the computers that use my products are replaced by newer or cheaper computers, my company will have customers.

Import

Fewer

The customers will divert for cheap computers and the demand of your computers will go down.

Explanation:

Yes, the demand of the computers will go down as the customers will move for the cheap computers. The cost of your computers is high due to the import cost of the computer parts.

It is the policy of the market that the cheap alternatives of the expensive items attracts the more customers. But in some cases some customers remain with some specific brand due to the quality and choice. Thus the newer and cheaper computers will definitely attract the more customers.