Question
Explain the classification of market on geographical base.

Answer

  • According to the geographical or place base, a market can classified into four parts :
  • Local Market :
    • Generally, the place where commodities or services are produced and sold is called local market. E.g. clay, crockery market.
  • Regional market :
    • The commodities or services which are confined to a region or state is a regional market.
    • Generally it is restricted up to state only. e.g. Fast food market of Ahmedabad and Surat. Gujarati Telefilm market.
  • National Market :
    • Generally, the production of a commodity or services which are confined to a nation is called a national market.
    • This market is spread over the different states of the nation. e.g. Dairy product. Indian Sari market, Hindi Tele-film market.
  • International Market:
    • Generally, the trade of commodities or services which are not confined only to a nation but to many countries of the world are called an international market.
    • It is also called global market.
    • Purchase-sell of this market is known as import-export. e.g. mobile or car market.
    • However now because of scientific research, transportation and communication, development of facilities like cold storage and freeze, classification is not rigid. Regional market of a commodity can become national market.

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