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.
Transportation contributes to environmental contamination in addition to the pollution caused by chemical inputs in the growing phase.
However, small-scale growers tend to be more environmentally friendly because industrial-sized agriculture uses genetically modified crops, monoculture production, and chemical fertilizer-intensive processes to grow crops—practices that local farmers typically avoid.
[3] The goal of localisation is to reduce unnecessary transport, support entrepreneurism and to strengthen and diversify community economies.
[7] Similarly, the moral purchasing argument has been questioned as more and more consumers consider the welfare of people in countries other than their own.
Additionally, organic local food tends to be more costly so this is not an appealing option to consumers who are shopping on a budget.
Local purchasing preferences may conflict with procurement rules affecting public sector organisations.
[9] Shuman claims LOIS businesses are long term wealth generators, are less likely to exit destructively and have higher economic multipliers.