The availability of easy credit facilities is very helpful for budding entrepreneurs to innovate with newer business concepts. If a nation has a good banking system or if loans are available to entrepreneurs easily through financial institutions, then the scope of the market for the various goods increases manifold. The availability of cheap easier financial help thus increases the scope of the market for particular goods.
The economic stability of a country also helps to widen the market for various goods and services. If the economic conditions of a nation are sound, then its international trade relations gets wider and more buoyant with each passing year.
Consider the internal and external market for a particular product. The advertisements in magazines, newspapers, radio and television are important tools to increase the scope of market for a particular commodity. Nowadays advertisements are means of reaching out to the consumer to make him aware of the qualities of a particular commodity. Thus the use of media and advertisements together increases the demand for a commodity inside the country as well as abroad.
The scope or extent of market for a particular commodity depends upon the policy enacted by the government concerning that particular commodity. Here the government authorities use the role of
Regulatory affairs experts in framing the right policy. If the government imposes hurdles in the shape of high excise duties, import duties, quotas or high sales tax, the market of that particular good becomes limited. The government can also decrease the market of a particular product by banning exports. On the other hand export orientation schemes and low indirect taxes greatly help to extend the market for a particular product.
