Difference between Domestic and International Business

Difference between Domestic and International Business

Difference between Domestic and International business

Domestic Business

International Business

Geographic Area

It is carried out within the national or geographic borders of the countryIt is carried out across borders and national territories of a country
Restrictions
Tariffs and quotas are not present and very few local restrictions are imposed on a domestic businessMany restrictions are imposed while doing business internationally or entering a foreign market e.g. Tariff and non-tariff barriers, exchange controls, local taxes etc.
Culture
There is less difference in the market culture of local areas and regions within a country. The market culture is relatively uniformThe market culture widely varies among different nations and regions
Risk
Risk factor is lessRisk factor is high
Currency
A domestic business deals in a single currencyAn international business deals in multiple currencies
Human Resource
A domestic business can succeed with human resource with minimum skill and knowledgeMultilingual, multi-strategic and multicultural human resource is necessary for smooth operations of an international business
Employees are usually from the same countryGlobal human resource practices are carried out in an international business
Promotion
Domestic marketing and advertising strategies are usedMarketing and advertising strategies vary from country to country due to language barriers
Pricing
Same price is charged for similar productsPrice differentiation is carried out
Investment
Less capital investment is involvedHuge capital investment is involved
Quality
Quality standards are lowQuality standards are very high. Global standards are set
Regulations
Only local regulations are applicableInternational and host country regulations are applicable
Research
It is easy to conduct business research, demand analysis and customer surveyIt is very difficult and costly. Reliability of information depends upon the individual country
Cost Advantage
Do not enjoy Cost advantageAdvantage of location economies and cheap resources are available
Environment
A domestic business is only affected by the variables in the domestic environmentDomestic, foreign and international environment factors affect an international business
Development
The level of development may be same throughout the domestic marketEach country may be at a different level of development

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Biplob Hasan
Guest

Nice and effective….

kkv
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Very interesting and informative

Kritika
Guest

Nice nd easy thanks

Frosen
Guest

It helps lot. Tkeww

Brita Bih
Guest

It’s really educative and well summarized. I really do appreciate your efforts

Rosemary
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Thank you very much for this. Very helpful.

Neer
Guest

Hi

Minal
Guest

Thnk ew very much.. nicely elaborated..& well differentiated…. 🙂

R V
Guest

nice information !!