Domestic Business Vs. International Business: Explore the differences between Domestic Business and International Business
The term “business” refers to the combined effort and movement of individuals to create and sell goods and services to earn money. There are two types of business involved: Domestic business and International business. Let’s analyze some major differences between domestic and international business.
What is Domestic Business?
When a business conducts and manages all the transactions in its home country, it is known as domestic business. Basically such business is directed inside the geographical boundaries of a particular country.
What is International Business?
When a business conducts and manages all the transactions across borders with two or more countries, it is known as international business. In such a case, the people involved in the business (buyer and seller) belong to different countries.
Difference between Domestic Business and International Business
| S. No. | Domestic Business | International Business |
| 1. | When a business conducts and manages all the transactions in its home country, it is known as domestic business. | When a business conducts and manages all the transactions across borders with two or more countries, it is known as international business. |
| 2. | In this type of trade, the business person belongs to the same country. | Here the people involved in the business (buyer or seller) belong to different countries. |
| 3. | Here the quality and standard of the product may be low. | Here the quality and standard of the products are quite good. |
| 4. | Domestic business is limited to particular regions. | International business is wide. |
| 5. | Single currency is involved. | Multiple currencies are involved. |
| 6. | The capital investment is less in domestic business. | The capital investment is high in international business. |
| 7. | The restrictions are less. | The restrictions are more as compared to the domestic business. |
| 8. | Low risk factors are involved. | High risk factors are involved. |
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