According to Adam Smith, labour specialisation is constrained by the size of the market, and transportation helps to broaden the market. Explain the significance of this comment.

NAKASSAJJA CERAMICS AND TILES LTD. Nakassajja Tiles and Ceramics Ltd. (NCTL), a fairly young firm in Jinja Uganda, faces rapidly changing markets and increasing competition, Jinja is famous for its hand-painted tiles, mostly in different shades of blue. The region’s special clay has enabled to produce long-lasting quality tiles over the centuries. Modern methods of production are new to the industry in Jinja. NCTL, is regarded as the largest and most modern domestic producer. However, as a manufacturer for the international market, it is considered to be in its infancy and in need of technical and management knowhow. Current production comprises ceramic tiles for walls, flooring and decorative purposes. The company is considering entry into the export trade and diversifying into sanitary ware and tableware. Its managing director is an experienced retailer of tiles and sanitary ware. Tableware, a product line unrelated to the construction industry, will require separate construction…

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