Characteristics of the Home Trade
Following are the characteristics of home trade: Characteristics of the Home Trade
It is a trade within the boundaries of particular country.
Its scope is only to the extent of local markets.
3. Local Currency:
Local currency is used for receipts and payments.
4. Local Goods:
Normally it involves the exchange of local goods sometimes foreign goods are also dealt in.
Similarly, all the traders face similar kinds of facilities.
6. Immediate Possession:
In home trade, the goods are handed over to buyers immediately, so that they can use them according to their need.
Insurance of Goods:
In home trade, the goods are no insured due to their sale and purchase in local market.
8. Less Transportation Cost:
The transportation cost is associated with the distance and weight of goods, in home trade the transportation cost remains low due to less distance.
In home trade, the essence of national culture is always prominent. The
buyers prefer to purchase those goods, which are according to their cultural standard.
10. Increase in National Income:
The national income of country also increases with the expansion volume of home trade.
Type of Home Trade
Home Trade can be divided into two parts:
1. Wholesale Trade:
Selling of goods in large quantities to shopkeepers for resale to the consumers. Wholesaler has specialized dealing in particular items. He purchases in bulk from the production place, or factories.
2. Retail Trade:
Retailing means to sell the goods in Dfa Ho small quantities to the ultimate consumers. Retailer is a middleman who purchases goods from manufactures or wholesalers and provides these goods to the consumers near their house.