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Domestic Trade

Updated on November 20, 2015

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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    • sameerk profile image

      sameerk 6 years ago from India

      nice info and hub

    • dilipchandra12 profile image
      Author

      Dilip Chandra 6 years ago from India

      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
      Author

      Dilip Chandra 6 years ago from India

      lindsay - Thanks for the comment...

    • profile image

      chamz 6 years ago

      good article... gained a lot.

    • profile image

      harlyn 6 years ago

      how nice info.:)

    • profile image

      priyanka 5 years ago

      thanks yaa

    • profile image

      Anagha 5 years ago

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

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      brijender 5 years ago

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

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