Definition: Geographical sphere of activity
The number of enterprises according to geographical area of activity can be broken down as follows:
- Enterprises operating primarily in their own country;
- Enterprises operating primarily outside their own country but within the EU;
- Enterprises operating primarily outside the EU.
This is the kind of breakdown normally used for enterprises whose main activity is in the wholesale trades.
A distinction is made between the following types:
- Wholesale distribution primarily in own country. Enterprises are considered to be engaged in wholesale distribution in their own country if they are wholesale enterprises which carry out their purchasing and marketing solely or mainly in the country in which the enterprise is located. (Imports and exports are equal to less than 50% of total purchases and resale of goods respectively);
- Wholesale trade outside own country. Enterprises are considered to be engaged in wholesale trade outside their own country if their sole or main activity is one of the following:
- purchase of goods abroad and resale in the country in which the enterprise is located (import trade);
- purchase of goods in the country in which the enterprise is located and resale abroad (export trade);
- purchase and resale of goods in foreign countries, irrespective of whether the goods pass through the territory of the country in which the enterprise is located (transit trade).
(Imports of goods intended for resale and/or exports of goods are equal to or greater than 50% of the total purchases and resales of goods respectively).