Economics of scale

Description:

Economics of scale is a term that is used to describe the reduction in cost-per-unit as more units are produced. Nowadays, more and more companies try to utilize the advantages of other countries in the whole world to enlarge their business scale and as a result reduce the cost of their products and services. This trend accelerates the steps of "Global village" because economics of scale requires the company to extend its sight into all over the world. The whole world but not only one single country is its factory that it could get resources and materials in one country, produce the products in another country and finally deliver the products to any other country.