Domestic market

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Domestic market
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The domestic market is the total of buy and sell transactions taking place in a given country. The domestic market is classified within the geographic scope where, in addition to the domestic market, there are : regional market, local market, international market and global market. In order to protect the domestic market and limit the freedom of foreign competition, customs duties or border taxes are applied.

One of the methods of protection of the domestic market is protectionism, that is, directing all activities to increase the production of national products so that the demand for them will increase maximally and gain foreign markets. These methods can be used thanks to external political programs mainly covering the sphere of trade policy. Many States continue to use this defense in their actions.

Functions of the domestic market

The main functions of the domestic market include, among others:

  • Valuation of various products and economic resources. (the market is an instrument to establish the right price for producers and buyers of various goods),
  • Main source of basic information for business entities. (the market is the main source of information on prices as well as their implementation and information on demand and supply),
  • The market is a necessary condition for the rational use of economic resources (defining the target market and determining the price of a product or services to effectively manage products and services),
  • It is a prerequisite for the proper use of economic resources (by providing economic entities with objective information on prices, inputs and outcomes related to various economic activities enables making rational decisions and encourages entities to save on resources),
  • It facilitates the determination of balance states in the economy (demand and supply on the market as well as the exchange of goods and services and pricing, provide the economic entities with important signals that may contribute to maintaining the balance or may cause a disturbance.
  • It is a determinant of the social usefulness of production, which adapts production to needs, assesses whether a given production will be accepted on the market and will gain its recognition. In order to sell their goods, the seller must adjust the size and structure of production to the demand that he prospers on the market).


The factors affecting the position of enterprises on the domestic market are:

  • The level of services and products manufactured,
  • Innovation and the use of modern technologies in the production of products compared to the competition,
  • A wide range of activities aimed at quickly terminating the entire process,
  • Creativity and original approach to customer service, which will be appreciated when resolving unusual consumer issues.

Enterprises taking into account the above-mentioned factors have a better chance of better contacts with customers, achieving higher sales results, as well as broadening contacts with competitors on the domestic and foreign market. These determinants are an important element from the company's point of view and they have a significant impact on the size of the contracts being signed. They strongly influence the company's profits in a given industry.

Conditions for the existence of a mature market

The features of a mature market economy are presented below:

  • Domination of private property and freedom of transfer of property rights (if the scope of public property is wide and the freedom of ownership transfer is smaller, the market has more restrictions),
  • Freedom to run a business (the more restrictions there are in such areas as production and trade in goods, the smaller the possibility of a well-formed market for products and goods),
  • The institutions serving the market must exist and operate efficiently (banks, stock exchanges, securities commissions, insurance companies, brokerage firms must operate and prosper, without them it is difficult to develop the market),
  • Market integrity (that is, mutual dependence of markets),
  • Competition between economic entities.

The domestic labor market

The domestic labor market belongs to the category of the economic market on the territory of a given country. In this market, job searches are carried out by employees, i.e. unemployed people looking for a job, or those who want to change their current place of employment. Entrepreneurs who create jobs also search for a new workforce. These transactions also involve employment agencies that mediate both parties in this search.

The labor market is a place where a combination of labor supply and demand for it takes place. It can be divided due to geographical coverage on the national, regional or local level.

The nationwide labor market refers to the territory of the whole state. In this market, legal regulations standardize the conditions, norms and regulations regarding work for both employers and employees. They define their relations with each other, which in the area of the entire state are largely similar.

The regional labor market concerns the macro region where there are characteristic job search opportunities. They allow you to change your employer without having to move to another place.