Social and economic essence of internal trade

Abstract

Introduction. In the context of European integration changes in the national economy particularly important the solution of internal trade system transformation problems becomes very important. That is why the study, review and development of recommendations and proposals that are addressed to the issue of forming an effective system of internal trade are of particular relevance. Taking into consideration the importance of domestic trade for the development of the national economy not only in domestic but also in the foreign market, we should say that it is endowed with not only an economic but also a social entity. This aspect requires a more detailed study for understanding the essence of domestic trade from an economic and social point of view.

Purpose. The main objective of this study is to determine the social and economic essence of domestic trade.

The method (methodology). Methodological tools of this study are as the following ones: a content analysis of the results of research scientists and economists, synthesis method, synthesis and others.

Results. Summing up the results of the study, we have come to the following conclusions: domestic trade covers all trading activity in the domestic national market – from bulk purchase of goods from manufacturers to their retail sale to consumers, at the same time. It serves as the provision of services in the market of the two parties at the signing their transactions. The development of domestic trade in Ukraine at the present stage takes place in the context of changing the format of International Economic Relations and European Integration.

Therefore, internal trade has both economic and social nature and, accordingly, serves both economic and social functions, the implementation of which can solve the problems of economic and social order. In this case, the reason for the increasing challenges in the economic and social spheres can be considered as institutional order problems related to the inefficiency of the regulatory process in trade and poor quality management on the part of state bodies.

Prospects for further research in this direction can be determined as the necessity to study transformation of the domestic trade system in order to clearly define the problems of social and economic systems of various levels, conduct diagnostics state changes in the system itself. The solution to this scientific and practical task predetermine the necessity of the selection of indicators characterizing the influence of factors and condition of each of the internal trading system and subsystems.