Question

Trading of livestock products like milk powder, egg powder, meat, wool, leather etc. constitute

• A. national market
• B. regional market
• C. local market
• D. world market

Hint:

Processing raw agricultural products into dried or shelf-stable forms (such as converting raw milk into milk powder) expands their market scope from local to the world market.

Answer 1

The Correct Option is D

Step 1: Understanding the Concept:
Markets can be classified based on their geographical scope and the movement of goods into local, regional, national, and world (international) markets.

Step 2: Detailed Explanation:
The geographical scope of a market depends on the shelf-life, bulkiness, and demand for the commodity:
- Local markets are typical for highly perishable, unprocessed products (such as raw liquid milk or fresh vegetables) that must be sold near the production site due to transport limits.
- Regional and national markets cover wider areas, such as an entire state or country, for processed or semi-perishable goods.
- World markets handle commodities that are highly stable, processed, high in value relative to weight, and traded globally across international borders.
Livestock products such as milk powder, egg powder, processed meat, wool, and leather are processed to extend their shelf-life and reduce bulkiness.
These characteristics allow them to be shipped globally to meet international demand.
These commodities are traded on a large scale between countries and are subject to international trade agreements and tariffs, making them part of the world market.

Step 3: Final Answer:
The global trading of these processed livestock products constitutes a world market.