The functioning of retail trade in the borderland areas of Poland in the 1990s and in the first decade of the 21^st century was largely determined by shopping done in Poland by citizens of the neighbouring countries. Using the multifunctional model of the functions of retail trade and the service and functional trade theories, the author pointed out that the basic functions of retail trade in borderland areas are activities of economic character. Social functions of trade are also of high importance, e.g. the function of an integrator of social life, whose aim is to equalise culture differences, and create the atmosphere of cooperation in diversified territories. The functions of local development are very important in borderland areas, because they contribute to greater competitiveness of border towns, to the creation of new jobs, and to improvement in the living conditions and in the standard of living of the inhabitants.

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