Katana VentraIP

Local purchasing

Local purchasing is a preference to buy locally produced goods and services rather than those produced farther away. It is very often abbreviated as a positive goal, "buy local" or "buy locally', that parallels the phrase "think globally, act locally", common in green politics.

On the national level, the equivalent of local purchasing is import substitution, the deliberate industrial policy or agricultural policy of replacing goods or services produced on the far side of a national border with those produced on the near side, i.e., in the same country or trade bloc.


Before industrialization and globalization became widespread, there were so many incentives to buy locally that no one had to make any kind of point to do so, but with current market conditions, it is often cheaper to buy distantly-produced goods, despite any added costs in terms of packaging, transport, inspection, wholesale/retail facilities, etc. As such, one must now often take explicit action if one wants to purchase locally produced goods.


These market conditions are based on externalized costs, argue local-economy advocates. Examples of externalized costs include the price of war, asthma, or climate change, which are not typically included in the cost of (for example) a gallon of fuel. Most advocates for local economics address contracting and investment, as well as purchasing.


Agricultural alternatives are being sought, and have manifested themselves in the form of farmers' markets, farmed goods sold through the community cooperatives, urban gardens, and even school programs that endorse community agriculture.