briefly explain economic importance of hometrade
Answers
Answer:
Before the global economic crisis of 2008, developing nations experienced tremendous growth due to an ever-increasing consumer demand in developed nations. With the recession of 2008, it was seen that this reliance on exports to fuel the economies of developing nations was an unstable and unsustainable one, vulnerable to the economic contractions of other nations.
Recently, the United Nations Conference on Trade and Development (UNCTAD) published its annual trade and development report detailing the need for shifts in the economic paradigm of many developing nations. An exports-driven economy is not fiscally sustainable, and the Great Recession has shown devastating impacts on economies that have been dependent on primarily exports for growth.
When growth is stifled in developed countries, such as the United States, there is not much growth in global trade. Consequently, those developing nations that have been highly dependent on exporting to developed consumer nations suffer during economically unstable periods, when worldwide trade and demand rapidly decelerate.
The next step for developing nations is to establish economics that are not based on the unsustainable global demand of developed nations, economics that promote domestic industry and investment. While exporting does develop a profitable avenue through which to sell goods, nations that depend so heavily on exports suffer greatly when there are declines in worldwide demand. Countries like South Africa are best off, according to UNCTAD, to concentrate on trade and consumption within its own borders if it wants to maintain growth.
If developing nations concentrate on increasing domestic demand and stimulating growth, they create additional markets and partners, other developing nations, with which to trade. Thus, economies based on furthering both domestic demand, as well as focusing on promoting sustainable export-based economic media, are the most viable.
Explanation:
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Answer:
Domestic trade, different from international trade, is the exchange of domestic goods within the boundaries of a country. This may be sub-divided into two categories, wholesale and retail. Wholesale trade is concerned with buying goods from manufacturers or dealers or producers in large quantities and selling them in smaller quantities to others who may be retailers or even consumers. Wholesale trade is undertaken by wholesale merchants or wholesale commission agents.
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