Question

What are the classification of market based on geographical locations.

Answer 1

Instructions: Mention local market, regional market, national and international market.

Solution: Classification onn the basis of geographical locations are:

• Local market:
  • In this type of market the buyers and sellers are limited to sell their products in local regions or area.
  • They sell perishable and daily use goods as the transportation of such goods are expensive.
• Regional Market:
  • These markets covers wider area than local markets like a district or cluster of smaller states.
• National Market:
  • The demand of goods sold is limited to a specific country.
  • Government may not allow the trade of such goods outside the national borders.
• International Market:
  • The demands for the product is international
  • Goods are traded internationally in bulk quantities.