significant scale economies

[keannu]

Even thought this deals with concrete things, it has some abstract nuance I can't grasp. What is significant scale economies ? Is it about the plan to combine banks, insurance compaies, etc to make an efficient system??

ex)Significant benefits likely will result from the integration of financial services markets. A central consideration is the inclusion of significant scale economies - the cost advantages that a business obtains due to expansion - in banking, securities markets, and payment systems. For instance, modern banks, insurance companies, pension funds, payment systems, and securities markets all use computer-based technology that is scale-dependent for efficient operation. Even in their smallest confugurations, these technologies often exceed the needs of institutions in small financial systems....And additional benefit is that, in larger markets, the regulatory infrastructure tends to be of higher quality and lowe cost than in smaller markets.

[5jj]

It tells you in the text: significant scale economies are the cost advantages that a business obtains due to expansion. The bigger a firm becomes, the more it can save. Examples of how this happens follow in the paragraph.

[Tdol]

You will also hear economies of scale used a lot.

[BobK]

You will also hear economies of scale used a lot.

BNC - 774 hits (as against 168 for 'scale economies')
COCA - 997 hits (as against 54)

See more here: British National Corpus (BYU-BNC)

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