External Economies of Scale:

These are advantages or benefits gained by a firm, as the industry in which it operates grows larger. An industry grows when the number of firms constituting the industry increases. These advantages are in the form of availability of cheaper inputs like skilled labour, common services and research.

Economies of Skilled Labour:

This involves upgrading the skills of labour through the provision of education and training facilities in a well-organised industry. This ensures that education and training of labour do not become part of the industry's operations but rather some specialized institutions take over the performance of these functions. This is often easier in well-organised ones. Such education and training culminate in economies of manpower development and generally lower the cost of production in the industry.