Advantages of Rationalization
➢ Advantages to Producer
1) Lesser value of Production:
Rationalization results in lesser production prices on account of lesser kind of merchandise and
introduction of specialization and simplification of production processes.
2) Economies of enormous Scale:
Rationalization brings regarding economies of enormous scale production and distribution. By achieving
mutual cooperation between varied companies in operation in associate trade, economies of bulk getting,
centralized advertising, production and distribution policies etc. square measure ensured.
3) Industrial Stability:
Rationalization, by adopting the techniques of integration, absorption and merger etc. eliminates the
inefficient and weak units. This results in correct industrial stability and peace and provides appropriate
basis for future coming up with for the trade as an entire.
➢ Advantages to Labor
