| A | B |
|---|
| External Economies of Scale | Economies shared by firms in the same industry or area |
| Economies of Concentration | Special support services grow up in a locality |
| Economies of Information | Special information services support firms |
| Economies of Disintegration | Other firms attracted to an area by specialised industries |
| Integration | Growth of firms through mergers and takeovers |
| Horizontal Integration | A firm takes over another at the same stage of production |
| Vertical Integration | Joining together of firms at different stages in production |
| Multinationals | Large companies with branches all over the world |
| Empowerment | Sharing responsibility for decision making |
| Commercial Economies | Advantages in buying and selling in large quantities |
| Internal Economies | Benefits to a firm from growing large |
| Technical Economies | Benefits from using better production methods |
| Risk spreading Economies | Producing a range of products to avoid over-specialisation |
| Managerial Economies | Benefits from employing specialist managers in large firms |
| Lateral Integration | Joining of firms producing related products |
| Conglomerate Integration | Joining of firms producing a range of different products |
| Downsizing | Firms reducing staffing to become more competitive |
| Diseconomies of Scale | Disadvantages resulting from a firm becoming too large |
| Demerger | A firm splits itself up into 2 separate companies |
| Diversification | A firm produces a wide range of products to spread the risk |
| Unit Cost | The average cost of producing the firm's output |
| Division of Labour | Splitting a production process into several parts |
| Specialisation | A worker concentrates on a small part of a job |
| Outsourcing | A firm buying in a part rather than making it themselves |
| Merger | Two or more firms joining together to make one |
