Domestic business Vs International business
Domestic business refers to business transactions transacted within the geographical boundaries of a country
International business refers to the business transactions transacted in beyond the boundaries of a country
2. Participants in Business
People / organizations within the country participate in business activities
People/organizations outside the country participate in business activities
3. Mobility of Factor of Production
The factors of production i.e. labour,, capital, technology, material, etc., move freely within the boundaries of the country
The factors of production i.e. labour,, capital, technology, material, etc., move across the boundaries of the country.
4. Nature of Consumers
Consumers are relatively homogenous in nature in terms of culture, behavior ,taste, preferences, legal system, customs and practices, etc.,
Consumers are relatively heterogeneous in nature in terms of culture, behavior ,taste, preferences, legal system, customs and practices, etc. prevailing across the countries,
5. Business System
Domestic business is governed by the rules, laws, policies taxation system of a single country
International business is governed by rules, laws and policies ,tariffs and quotas etc., of multiple countries
6. Currency Used
Domestic business transactions are settled by local currency of a country.
International business transactions are settled by foreign currencies.
7. Mode of Transport
The goods involved in domestic business are mainly transported by roadways and railways.
The goods involved in international business is mainly transported by water and airways.
8. Risk Exposure
The risks involved in domestic business are relatively less.
The risks involved in international business are more due to distance, difference in socio-economic and political conditions. change in foreign exchanges value, etc.,
9. Scope of Market
The scope of market is limited to national boundaries of a country.
The scope of international business is very wide and extends beyond the frontiers of a country.
10. Payment of Excise duty
Payment of excise duty involves simple procedures and it is relatively low in domestic trade
The process of payment of excise is complicated in international business and the rate of excise duty is relatively high.