Question

Market can be classified on the basis of importance and area covered.

Answer 1

Classification of Market

On the basis of importance:

1. Primary Market: Primary market refers to the market for primary products such as agricultural and forest products, for example, fruits, vegetables, food grains etc.
2. Secondary Market: Secondary market refers to the market for semi-processed and semi-manufactured goods. For example yarn market, iron ore market etc.
3. Terminal Market: Terminal market refers to the market where goods are sold to the ultimate consumers or the users of the product.

On the basis of Area Covered

1. Local Market: The market for the commodities which are sold within local geographical limits of a region is known as a local market.
2. National Market: The market for the commodities which are sold within the country is known as national market.
3. International Market: The market for the commodities which are produced in one country and sold in other countries is known as international market.