Introduction
“Home Commerce” includes the activities of interchanging of goods, services within the same country. It is more commonly known as Domestic trade or Domestic commerce. Home commerce is any commerce that is interacted within the territorial limits of a country. Any product or service which is raised produced, processed or grown and exchanged for some consideration or money value within the same country. Home Commerce, Home Trade and Domestic Trade, Internal Trades are all same, the terms are used interchangeably.
History
Why it is Important for a Country?
Internal trade facilitates mutual exchange of goods and services and it also builds a diversified market for goods and service. This diversification of goods and services creates varieties and diverse kind of skills among the labors and service providers. When home trade is carried on in a wider scale, goods are moved and transported from one place to another part of the country. Transfer of goods and services from one point to another point demands various modes of communication and transport services within the country, like roads, vehicles, trains, airways, telephone and many other communication networks. Payment and exchange system for the transfer of goods and services again call for banking and other exchange facilities. When the domestic trade grows considerably or goes beyond immediate local level, the market function increases manifold to take care of storage, packing, processing, and transportation. When the market is developed many producers and service providers come to the market to take advantages of the situation, or earn money, competition begins to start, every one becomes eager to sell own products and services-- then comes the need to advertise.
Features
Home commerce is a never ending process, it builds a country, makes it stronger internally, since its inception it is continuously creating the scopes and developments of employment, education, health care, insurance, laws, economic system—in other words, it lifts an economy from the primitive stage to a modern level. It makes one country self sufficient, respectable to other countries of the world, home commerce builds a nation. The growth and development of an economy significantly depends on an extensive network of well organized system of domestic trade. The domestic trade contributes around 15% GDP of India. The domestic trade is performed through two main channels of distributions, they are, wholesale and retail. Retail sector is more important than wholesale sector in terms of contribution to the GDP and in terms of generating employments.
Tips and Comments
Home commerce, in principle is nothing different from international trade. Because the motivation and the behaviors of the concerned parties in the trade never change, fundamentally remain the same with single motive—money, irrespective of the places of trade between. But international trade is expensive because of differences in many governing and controlling factors, like laws, currency, transportation, quality, standard, language barriers between the countries, cultures, fluctuation in the currency exchange rates, and many others. The international trade is more costly because it imposes tariffs when the goods cross the border—labor, capital, and goods everything is more mobile within a country in domestic or internal trade than international trade otherwise commonly known as export or import.
