Saturday, 4 January 2014

Is there still any thing like a local market?

In our school days we used to be taught the definition of a local market in economics defining it as a factor to determine the prices. The concept was that commodities in a local market were supposed to cost comparatively lesser as there was not much of any transportation charges involved. In a way there were not much of fluctuations causing rise and fall in prices locally. Now the whole country, or say even the world as a whole, is a sort of a local market because of technological developments both in the areas of communication and transportation. If rates of onion, garlic and potatoes go high in New Delhi they have their full impact in Kanpur and Lucknow. If we talk of the share  market, the rise and fall of share index gets quite affected in Mumbai if there are any bigger changes in trend both upward and downward in Singapore or even in USA. Practically speaking there is now nothing like a local market, the whole country, nay the whole world, is like one composite market affecting the economy of different countries uniformly quite often.

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