The domestic market is that market which includes all transactions that occur within a country, except for those related to abroad, that is, the exports and imports.
Therefore, a market is a mechanism that allows bidders and claimants to reach an agreement through a price. On the other hand, the domestic refers only to that market that occurs within a country or region. The concept is similar to the internal market. Companies often make large investments in marketing studies to analyze these markets.
Differences between internal market and external market
There are some differences between the internal and external markets. Normally they are related to the scope of each one and the rules that govern them. Thus, while the internal market, as we mentioned at the beginning, is carried out within a territory, the external market refers to international trade between countries.
Regarding the rules that regulate them, the inmate is usually through the trade codes or similar rules from the legislative branch of the country. The external market is governed by international agreements between countries or by those established in the different associations between them. For example, the Treaty of Free trade of North America or the European Union itself as a form of union between countries with common objectives.
Types of domestic markets
They can be classified in a similar way to any other market, depending on where we put the focus of attention. Thus, we can say that there are the following categories:
- By types of goods. In this case we have the markets of perishable goods, with the clearest example of food, durable as household appliances, or services, such as tourism.
- For the geographical scope. There would be local, regional or national markets. In this case, international markets are not included, since they are external in each country.
- According to the type of buyer. We have the consumer market, industrial, resale or institutional.
Examples of domestic markets
Some examples of domestic markets can be:
- An example of the domestic consumer market may 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, etc.