Home market
Home market (or domestic market, internal market, national market) - is the market of products and resources, limited to a certain territory (for example, a city, region, country, group of countries), where market participants (residents) carry out their economic activities among themselves within this territory[1]. The presence of the market is characterized by the presence of its mandatory elements, such as: people (organizations), purchasing power, opportunities, sellers.
Home market segments
In General, the structure of the domestic market of the country can be represented as follows[2]:
- the credit market it's a part of the financial market in which credits are provided on the terms of urgency, repayment and payment,
- the product market is the sphere of commodity exchange associated with the sale of goods and it's the place where a specific economic activity associated with the sale of goods,
- the real estate market is a set of relationships that are created around transactions with real estate objects,
- the foreign exchange market is a system of stable economic and organizational relations arising from the implementation of operations for the purchase or sale of foreign currency, payment documents in foreign currencies, as well as operations for the movement of capital of foreign investors,
- personnel selection is an economic environment in which a certain amount of employment and the level of wages are established, as a result of competition,
- stocks and bods market is an integral part of the financial market in which the securities turn around,
- the market of services is the sphere of circulation or a set of acts of sale and purchase of various types of activities that satisfy the needs of an individual, a group of people, organizations,
- investment market - a market in which the objects of purchase and sale are a variety of investment goods and tools, as well as investment services that provide the process of real and financial investment.
Home market of the European Union
One of the biggest achievements of the European Union is the creation of an internal market[3]. The domestic market means that trade within the European Union is unrestricted. There is no customs on the borders between EU countries. Companies are free to trade with each other. Competition is free. The domestic market also includes the free movement of people within the European Union. People are free to go on vacation or to work in another EU country. It has become easier to engage in certain professions because the diploma of education obtained in one EU country is also suitable in other EU countries. Competition has also grown, since all companies operating in the EU can compete for work in government projects. Despite the competition, the wider market gives enterprises significant advantages. Thanks to a single currency, it is easy to compare prices. Consumer protection is high in all countries of the European Union. Consumers can not be fooled. Products must be safe. Most of all, exports are influenced by different technical requirements, medical regulations, safety standards and different national regulations and licenses. The European Union has also succeeded in removing these obstacles. Common standards and requirements have been created for products through common legislation and directives. So it was possible to solve problems in trade between all countries participants[4].
Footnotes
| Home market — recommended articles |
| Domestic market — Countertrade — Advantages of cooperatives — European Coal and Steel Community — Forward market — Service economy — Consumer protection — Local market — Corporate banking |
References
- Francois J., Wooton I., (2008), Market Structure and Market Access, World Bank Publications.
- Harrison J., (2014), European Union and South Korea, Edinburgh University Press Ltd.
- Kaynak E., (2012), Marketing Issues in Western Europe: Changes and Developments, Routledge, Taylor & Francis Group, London and New York
- McDonald M., Dunbar I., (2004), Market Segmentation: How to Do It, how to Profit from it, Elsevier Butterworth-Heinemann.
- Risko T., Wiwczaroski T., (2004), From Domestic Marketing through International Marketing to Intercultural Marketing, New Delhi Publishers.
- Singha D., Delios A., (2011), Corporate governance, board networks and growth in domestic and international markets: Evidence from India, Journal of World Business, Published by Elsevier Inc.
- Varey R., Lewis B., (2000), Internal Marketing: Directions for Management, Psychology Press, Routledge, Taylor & Francis Group, London and New York.
Author: Andrii Didukh
