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The success of mass distributors was based on "economies of speed" whereby a company internalized a high volume of market transactions. The increase in transaction volume led to high stock turnover, which in turn led to rapid cash flow. This cash flow then enabled companies to buy raw materials in large quantities at lower costs, with lower credit cost terms and, thus, to self-finance expansion. Moreover, the economies of speed supported the growth of market share because mass distributors were able to offer more variety at a lower cost to their consumers.

The main idea of the paragraph

One of the two technological innovations is the introduction of continental railroad and telegraph systems, which led to “economies of speed” by which a company internalized a high volume of market transactions and on which mass distributors succeeded. Moreover, the economies of speed supported the growth of market share because mass distributors were able to offer more variety at a lower cost to their consumers.

作为两项技术革新之一的是引入大陆铁路和电报系统，由此引发了“速度经济”，借此企业将大量的市场交易内部化，并借此取得了大规模分销的成功。此外，因为借助速度经济，大规模分销能以较低的成本向客户提供更多的品种，速度经济从而推动了市场份额的提高。

词语解释

This cash flow then enabled companies to buy raw materials in large quantities at lower costs, with lower credit terms and, thus, to self-finance expansion.

此句中

1、This cash flow then enabled companies 是主要部分

2、to buy raw materials in large quantities at lower costs, with lower credit terms 和 to self-finance expansion两个动词不定式都作宾语companies的补足语，在前一个动词不定式中，in large quantities，at lower costs和with lower credit terms三个介词短语，都修饰动词buy，表示方式.

词语解释

economies of scale：refer to the note in Unit 1

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