"There is a good or product that I produce by my own. Maybe in one of my factories. And I sell this good to my people by using the internal market. Am I right so far?"
yeap, people of your nation have a choice to buy goods from your country or from a foreign producers. (as you dont bother whether your computer was made in USA or China)
for the rest:
nope, u misunderstood me!
lets say there would be an imagined ratio of 50% of demand bought from companies IN your country,
the other 50% is bought from FOREIGN producers.
foreign market penetration would be a maximum of 50% (at a level of 100 points (factor 1 describes there are no limits to export goods to your market: means 0,5x1,0),
so you cannot sell more of your goods, for people buy also foreign goods.
now you have this tech researched and its "(minus) five points" HARDER TO OFFER FOREIGN GOODS in your market.
(means [0,5x0,95] for people are still indifferent from whom they would buy, but cannot get as many foreign products due to lower foreign market penetration in internal / domestic market)
of course the ratio of 50% is a number which just crossed my minds for an explanation, does not describe games mechanism!
given this, your people HAVE TO BUY MORE GOODS WHICH WERE PRODUCED IN YOUR COUNTRY
now: [0,5i+(0,5f-[0,5fx0,95])]x1,00 == a new INTERNAL market share of 52,5 % instead of 50%
or something like this... (its to late in the evening to remember basics of microeconomics)
just means you have your 50% from the beginning and additionally the lost "FIVE POINTS"-related foreign market share added to your own market share
the end of this chain:
YOU HAVE MORE SELLS (not higher total demand), thus more private capital
otherwise the concept of market penetration makes no sense.
and the amount of consumption, as well as rate of chance to buy/sell is effected by other technologies.
market penetration (its wiki, i admit. i am a economist i would explain it too complicated^^)
"Market penetration is one of the four growth strategies of the Product-Market Growth Matrix defined by Ansoff.
FOLLOWING IS IMPORTANT
Market penetration occurs when a company enters/penetrates a market with current products. The best way to achieve this is by gaining competitors' customers (part of their market share). Other ways include attracting non-users of your product or convincing current clients to use more of your product/service (by advertising etc). Ansoff developed the Product-Market Growth Matrix to help firms recognise if there was any advantage of entering a market....
Market penetration occurs when the product and market already exists
Other growth strategies include:
Product development (existing markets, new products): McDonalds is always within the fast-food industry, but frequently markets new burgers.
Market development (new markets, existing products): Lucozade was first marketed for sick children and then rebranded to target athletes.
Diversification (new markets, new products): Mohen A.S, Bion Products, Selectron Ltd, bk
The penetration that brands and products have can be recorded by companies such as ACNielsen and TNS who offer panel measurement services to calculate this and other consumer measures. In these cases penetration is given as a percentage of a country's households who have bought that particular brand or product at least once within a defined period of time."