some nations that seek to produce all of their own needs face the problem that:

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11-11-2022
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some nations that seek to produce all of their own needs face the problem that:

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SonaDas SonaDas · Answer 1 · 2022-11-16T05:28:28+01:00

Some nations that seek to produce all of their own needs face the problem that some industries are too small to be efficient if restricted to their domestic markets alone. Customers of a single company who reside in the nation in which the business is located are also referred to by domestic markets.

Why are domestic markets important?

A domestic market is the supply and demand of goods, services, and securities within a single nation. It is also known as an internal market or domestic trade. Although the company may have many market sectors, in domestic trade a firm fundamentally only has to deal with one group of consumers and one set of competitive, economic, and market challenges. When competing in a domestic market, there are some restrictions, many of which drive businesses to expand abroad.

Limited market size and slow local market growth are the key drivers of international business expansion. The primary location for issuance activities is domestic markets. More businesses now have access to equity and corporate bond funding as local markets have grown. The advantage of domestic capital markets over overseas markets is that they draw more and smaller companies.

To learn more about domestic markets, visit:

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