This happens due to margin collapsing - so a border, padding to the parent element or inline content (any inline element) will switch off margin collapsing.
See demo below:
.largebox {
width: 800px;
height: 350px;
background-color: #00f;
margin-left: 10px;
border: 1px solid; /*ADDED THIS*/
}
.box1 {
width: 250px;
height: 300px;
background-color: #ff0;
margin-left: 50px;
margin-top: 25px;
}