Definition of Internal Trade

Internal trade which is the one that concerns us in this review, also known as domestic trade, is that trade that takes place between merchants and individuals who live in the same nation and then you are under the same business rules.

Commercial activity that takes place between merchants living in the same nation

For example, a product x that is manufactured in the country, is then marketed among merchants who reside there, and is finally bought by the national, local consumer.

Regulation by the commercial code

Also designated as internal, national, or domestic trade, it is governed by a series of rules that are contained in a document called the commercial code, which Of course, it must be respected by all the actors involved in this activity, because otherwise sanctions may be imposed on those who contravene.

An ancient economic activity

Trade It is one of the most traditional and popular economic activities that human beings carry out and that involves the

exchange of raw materials, goods, products, materials, among others, in exchange for a certain value that will be assigned to each of these.

The businessman , which is that individual who receives the monetary value for the sale of the product or that he markets, precisely obtains economic benefits for this activity that allow him to sustain himself.

From very far back in time, men when they began to experience the abundance of some goods decided that they would obtain commercial benefits from them, since they did not need them To use them, it was also the best way to take advantage of them, and so they put them up for sale and received in exchange money, or those other goods that they did not possess and that they did need, the famous barter.

The phenomenal expansion of the trade implied the diversification of the activity and so it is that today we can find various types of trade.

It should be noted that as a result of this commercial activity that imposes royalties on merchants and consumers, the The state receives taxes that will be used by the government in power to satisfy basic needs of the country such as Health, education, safety, among other.

Internal trade classes: retail and wholesale

Meanwhile, the internal trade of a nation can be divided into two large branches, on the one hand, the retail trade, and on the other, the wholesaler.

The retailer consists of direct sale to the final retail consumer, while the wholesaler involves the sale of large quantities of products, in bulk, usually to distributors, intermediaries, or corporate clients who are not consumers end.

Internal trade moves not only from the activity carried out by formal merchants, that is, those who are duly registered and comply with current regulations, but also by those called informal, who work outside of the legality.

The importance of internal trade in economic growth and in the generation of employment in a country

This situation will have direct repercussions on the development of the economy of a nation, so if there is a greater number of formal traders, the economy will present an important and growing development, while if, on the contrary, internal trade is dominated by illegal immigrants, the growth of the economy will be practically nil.

And it will also have them on the generalized development that this country presents, since if domestic trade is mostly formal, tax collection that comes from it will be greater and will allow the state to meet the social demands of the nation, which will translate into greater welfare for the population, this of course if the income they are distributed consistently and effectively, without corruption.

And not to mention the relevance of this trade in the generation of jobs, being the most important place that employs the active population from a country.

We must also say that successful internal trade will allow local companies a projection which will always imply a very positive context for the economic valuation of the nation.

On the opposite side of internal trade, we find the foreign trade, what is that trade that takes place between merchants, individuals, companies, living in different nations.

This disparate geographical situation will imply that each one must abide by the commercial conditions imposed by the nation to which it sells its products or services.

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