Final answer:
In a traditional distribution system, distribution systems can be national or local, depending on market reach and industry requirements, and they are not strictly national in scope.
Step-by-step explanation:
The question pertains to whether traditional distribution systems are national rather than local in scope. In a traditional distribution structure, distribution systems can be both national and local depending on the size of the market and the reach of the companies involved. However, companies are not restricted to specific locations due to the local availability of resources, which means that a national scope is often necessary to effectively reach a wider market and achieve economies of scale. Therefore, it would not be accurate to say that distribution systems are strictly national; rather, they are designed to meet the needs of the markets they serve, which can be local, regional, national, or even international.
For instance, a company that manufactures a product might have a national distribution system to distribute their goods across the entire country. Conversely, water distribution may be managed on a more local or regional level due to the nature of the service and the impracticality of national distribution. This demonstrates the importance of a flexible approach that considers the specific market structures and trade requirements unique to each industry and product.