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    Difference Between Domestic and International Business

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    Rahul
    Domestic business occurs within a single country, while international business crosses country borders. In domestic business, both the buyer and seller are from the same country and deal with the same currency, resulting in greater homogeneity. International business involves buyers and sellers from different countries dealing with different currencies and facing greater heterogeneity. Conducting international business is more complex and expensive than domestic business due to differences in political, economic, socio-cultural environments and greater restrictions across countries.

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    Difference Between Domestic and International Business

    Uploaded by

    Rahul
    109 views12 pages
    Domestic business occurs within a single country, while international business crosses country borders. In domestic business, both the buyer and seller are from the same country and deal with the same currency, resulting in greater homogeneity. International business involves buyers and sellers from different countries dealing with different currencies and facing greater heterogeneity. Conducting international business is more complex and expensive than domestic business due to differences in political, economic, socio-cultural environments and greater restrictions across countries.

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    Domestic business occurs within a single country, while international business crosses country borders. In domestic business, both the buyer and seller are from the same country and deal with the same currency, resulting in greater homogeneity. International business involves buyers and sellers from different countries dealing with different currencies and facing greater heterogeneity. Conducting international business is more complex and expensive than domestic business due to differences in political, economic, socio-cultural environments and greater restrictions across countries.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    109 views12 pages

    Difference Between Domestic and International Business

    Uploaded by

    Rahul
    Domestic business occurs within a single country, while international business crosses country borders. In domestic business, both the buyer and seller are from the same country and deal with the same currency, resulting in greater homogeneity. International business involves buyers and sellers from different countries dealing with different currencies and facing greater heterogeneity. Conducting international business is more complex and expensive than domestic business due to differences in political, economic, socio-cultural environments and greater restrictions across countries.

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    of 12

    DIFFERENCE BETWEEN

    DOMESTIC AND

    INTERNATIONAL

    BUSINESS
    DOMESTIC BUSINESS
    Defination
    The business transactions that

    occur within the geographical limits

    of the country is known as domestic

    business.
    Also known as internal business

    sometimes as home trade


    In a domestic trade the buyer and

    seller both belongs to the same

    country
    PATANJALI DISPLAY
    AMUL DISPLAY
    INTERNATIONAL BUSINESS
    Defination
    International business is one whose

    manufacture and trade occur

    beyond the borders of the home

    country.
    All the economic activities included in

    cross borders transactions comes

    under international business


    The company conducting

    international business is known as


    multinational or transnational

    companies
    AMAZON DISPLAY
    SAMSUNG DISPLAY
    basis domestic business international business
    Definition Domestic business involves those
    International business involves

    economic transactions that take


    those economic transactions

    place within the geographical


    that take place outside the

    boundaries of a country. geographical boundaries of a

    country.

    Buyer and Seller Both the buyer and seller belong


    The buyer and seller belong to

    to the same country in domestic


    different countries in

    business. international business.

    Currency Domestic businesses deal with


    International businesses deal

    the same currency since both the


    with different currencies since the

    buyer and seller are from the


    buyer and seller are not from the

    same country. same country.

    Customers There is greater homogeneity in


    There is greater heterogeneity in

    terms of the nature of customers


    terms of the nature of customers

    of domestic businesses. of international businesses.

    Geographical Boundaries Geographical boundaries limit


    Geographical boundaries do not

    domestic businesses. limit international businesses.


    basis domestic business international business
    Business Research Business Research is less
    Business Research is more

    complex and relatively cheaper


    complex and relatively expensive

    for domestic businesses


    for international businesses

    compared to international
    compared to domestic

    organisations. companies.

    Capital Investment Capital investment is lower for


    Capital investment is higher for

    companies that are involved in


    companies that are involved in

    domestic business. international business.

    Factors of Production The domestic business has


    The international business has

    greater mobility of factors of


    lesser mobility of factors of

    production compared to
    production compared to

    international business. domestic business.

    Restrictions Domestic business involves lesser


    International business involves

    restrictions than international


    greater restrictions than

    business. domestic business.

    Quality Standards The quality standards for


    The quality standards for

    domestic business tend to be


    international business tend to be

    relatively lower than international


    relatively higher than domestic

    business. business.
    Conclusion
    —CARRYING OUT THE ACTIVITIES OF INTERNATIONAL

    BUSINESS AND ITS MANAGEMENT IS FAR MORE

    DIFFICULT THAN CONDUCTING A DOMESTIC BUSINESS.

    DUE TO CHANGES IN POLITICAL, ECONOMIC,SOCIO

    CULTURAL ENVIROMENT ACROSS THE NATIONS, MOST

    BUSINESS ENTITIES FIND IT DIFFICULT TO EXPAND THEIR

    BUSINESS GLOBALLY. TO BECOME A SUCCESSFUL

    PLAYER IN THE INTERNATIONAL MAEKET FIRMS NEED TO

    PLAN THEIR BUSINESS STRATEGIES AS PER THE

    REQUIREMENT OF THE FOREGIN MARKET.


    thank you
    submitted by
    NAME :- Rahul Kumar
    ROLL NO:-1097
    SECTION :- C
    SEM:- VI
    COURSE :- B.COM(PROG.)

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