Summary 1

This lesson provided an overview of domestic trade, focusing on its definition, importance, and the roles of retail and wholesale trade. Domestic trade involves the exchange of goods and services within a country’s borders and can be classified into retail and wholesale categories. Retail trade addresses direct consumer sales, while wholesale trade involves bulk sales to intermediaries. The lesson emphasized the crucial role domestic trade plays in economic development by improving living standards, boosting employment, and fostering investment. Domestic trade has several advantages over international trade, including lower transaction and transportation costs and enhanced economic independence. However, it also faces limitations such as a restricted product range, which underscores the necessity of international trade for accessing diverse goods and achieving economic growth. Understanding domestic trade helps in appreciating how internal markets function and their impact on overall economic performance.