Advantages of large Scale Industries The following are the merits of large-scale production: 1. Internal Economies: Internal economies arise within the firm due to the expansion of the dimensions of a specific firm. 2. External Economies: External economies arise with the expansion of the industry. These are generally the results of large-scale production and are related to the benefits of localization. 3. Use of machines: Large-scale production always makes use of machines. So, all the benefits of the utilization of machinery are available. 4. More Production: The large scale industries can produce more goods. as an example, an enormous sugar factory can use molasses to form spirits and thus can reduce the value of the production of sugar. 5. Economies of Organization: With a rise within the size of the firm, the value of management is reduced. 6. Cheap and straightforward Loans: A large business can secure credit facilities at cheaper rates because these ...