Domestic Trade

Domestic trade is the exchange of goods, services, or both within the confines of a national territory. They are always aimed at a single market. It always deal with only one set of competitive, economic, and market issues. The trading is always with a single set of customers all the time, though the company may have several segments in a market.

Internal trade or home trade or Domestic trade may be sub-divided into Wholesale trade, and Retail trade. Wholesales trade is concerned with buying goods from manufacturers or dealers in large quantities and selling them in smaller quantities to others who may be sub-dealers, retailers or even consumers. Wholesale trade may be undertaken by wholesale merchants or wholesale commission agents. The wholesale merchant makes outright purchases from dealers or manufacturers or in wholesale commodity markets, and arrange their reselling to the best advantage on his own account. The wholesale commission agents act as selling agents of producers or dealers, arrange the sale of goods on best possible terms on behalf of the principal, and earn a commission for their services.

Retail trade is concerned with the sale of goods in small quantities to the actual users or consumers. It is generally carried on by a class of traders known as retailers. In actual practice, however, manufacturers and wholesalers may also undertake retail distribution of goods to bypass the intermediary retailer.

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Comments 9 comments

sameerk profile image

sameerk 6 years ago from India

nice info and hub

dilipchandra12 profile image

dilipchandra12 6 years ago from India Author

sameerk - Thanks for the comment :)

lindsays5624 profile image

lindsays5624 6 years ago

A good exaplanation of domestic trade and the surrounding issues. Thankyou.

dilipchandra12 profile image

dilipchandra12 6 years ago from India Author

lindsay - Thanks for the comment...

chamz 6 years ago

good article... gained a lot.

harlyn 5 years ago

how nice info.:)

priyanka 5 years ago

thanks yaa

Anagha 5 years ago

Very much to the point and correct. Helped me a lot. Thanks a ton!!!

brijender 4 years ago

i want to know why domestic trade should expand itself into international trade

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