Difference between domestic and international business

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 country It is carried out across borders and national territories of a country
Tariffs and quotas are not present and very few local restrictions are imposed on a domestic business Many restrictions are imposed while doing business internationally or entering a foreign market e.g. Tariff and non-tariff barriers, exchange controls, local taxes etc.
There is less difference in the market culture of local areas and regions within a country. The market culture is relatively uniform The market culture widely varies among different nations and regions
Risk factor is less Risk factor is high
A domestic business deals in a single currency An international business deals in multiple currencies
Human Resource
A domestic business can succeed with human resource with minimum skill and knowledge Multilingual, multi-strategic and multicultural human resource is necessary for smooth operations of an international business
Employees are usually from the same country Global human resource practices are carried out in an international business
Domestic marketing and advertising strategies are used Marketing and advertising strategies vary from country to country due to language barriers
Same price is charged for similar products Price differentiation is carried out
Less capital investment is involved Huge capital investment is involved
Quality standards are low Quality standards are very high. Global standards are set
Only local regulations are applicable International and host country regulations are applicable
It is easy to conduct business research, demand analysis and customer survey It is very difficult and costly. Reliability of information depends upon the individual country
Cost Advantage
Do not enjoy Cost advantage Advantage of location economies and cheap resources are available
A domestic business is only affected by the variables in the domestic environment Domestic, foreign and international environment factors affect an international business
The level of development may be same throughout the domestic market Each country may be at a different level of development

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