Ok. I’ve got this question for my economics. After lot of diggings, I am quite confused. Is local market synonymous to : traditional markets/ town market square?
And, does this picture represent a local market:
http://media-cdn.tripadvisor.com/media/photo-s/01/1d/01/11/the-local-market.jpg
Please proof-read the following answer I prepared:
Local markets are traditional form of markets. In earlier times, most markets were local. People provided for their wants by their own efforts, and very few of the things they needed were purchased from other people (i.e., other cities or countries). Primitive means of transport made it difficult or impossible to produce goods for sale over a wide area.
So, the basis of local markets is regional self-sufficiency (and also self-service). It is a form of closed regional market system.
For example, most towns of the world still have a market square or market hall where buying and selling take place, where the buyers meet sellers to do business with one another.
If your professor is looking for the literal meaning – like a farmers market or flea market, then yes your right.
You also need to consider local demand for certain goods/services. As in – if you live in Hawaii, theres a local market for surfboards that you wouldn’t have in Nebraska. Likewise the market in Nebraska for John Deere tractors is greater than it would be in Hawaii.