Domestic market

economic-dictionary

The domestic market or national market is that market that includes all transactions that take place within a country, except for those related to abroad, that is, exports and imports.

Therefore, a market is a mechanism that allows bidders and demanders to agree on a price. On the other hand, the domestic one refers only to that market that is produced within a country or region. The concept is similar to that of the domestic market. Companies often invest heavily in marketing studies to analyze these markets.

Differences between internal market and external market

There are some differences between the domestic market and the foreign market. They are normally related to the scope of each one and to the rules that govern them. Thus, while the internal market, as we mentioned at the beginning, is carried out within a territory, the external one refers to international trade between countries.

Regarding the rules that regulate them, the inmate is usually done through the commercial codes or similar rules from the legislative power of the country. The foreign market is governed by international agreements between countries or by those established in the different associations between them. For example, the North American Free Trade Agreement or the European Union itself as a form of union between countries with common objectives.

Types of domestic markets

National or domestic markets can be classified in a similar way to any other market, depending on where we focus our attention. Thus, we can say that there are the following categories:

  • By types of goods. In this case we have markets for perishable goods, with the clearest example of food, durable goods such as household appliances, or services, such as tourism.
  • By the geographical scope. There would be local, regional or national markets. In this case, international markets are not included, as they are external in each country.
  • According to the type of buyer. We have the consumer, industrial, resale or institutional markets.

Examples of domestic markets

Some examples of domestic markets can be:

  • An example of a domestic consumer market can be that of the United States, the largest in the world, not because of its number, but because of its purchasing power.
  • An example of a regional market would be one that is limited to a geographical area, for example, Extremadura, a Spanish region or the south-central region in Mexico.
  • In relation to the institutional market, an example would be related to the health system of a country: medicines, instruments, and so on.

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