Distinguish between Domestic and international business.
Distinguish between Domestic and international business.
S.NoBasis of DifferenceDomestic businessInternatinal business1.Nationality of buyersBoth buyers and sellers are from theBoth buyers and sellers belong to differentand sellerssame country. Hence, it is easier tocountries. Hence it is difficult to interactinteract with each other and enterwith each other and enter into businessinto a business transactions.transaction because of differences in their respective languages, attitudes and social customs.2.Mobility of factors ofThe factors of production like capital,Many legal restriction along with the differencesproductionlabour, raw material can move freelyin socio-cultural environments, geographic inflwithin the country without anyuences and economic conditions restrict the restrictions.the movement of factors of production like labour,capital, raw materials across countries.3.Political system and riskIt has to face the political system andIt is subjected to the political system and risk ofrisk of only one country.risk of different countries.4.Currency used in businessThe currency of the home country isThe currency used in business transactionstransactionsused in business transactions.is that of more than one country.5.Nationality of other stakeIn this business, the various stake holderIn this business, the various stakeholdersholderslike the employees, middlemen, shareholders,like employees, middlemen, share holders, partners belong to same country.partners belong to different countries.
S.NoBasis of DifferenceDomestic businessInternatinal business1.Nationality of buyersBoth buyers and sellers are from theBoth buyers and sellers belong to differentand sellerssame country. Hence, it is easier tocountries. Hence it is difficult to interactinteract with each other and enterwith each other and enter into businessinto a business transactions.transaction because of differences in their respective languages, attitudes and social customs.2.Mobility of factors ofThe factors of production like capital,Many legal restriction along with the differencesproductionlabour, raw material can move freelyin socio-cultural environments, geographic inflwithin the country without anyuences and economic conditions restrict the restrictions.the movement of factors of production like labour,capital, raw materials across countries.3.Political system and riskIt has to face the political system andIt is subjected to the political system and risk ofrisk of only one country.risk of different countries.4.Currency used in businessThe currency of the home country isThe currency used in business transactionstransactionsused in business transactions.is that of more than one country.5.Nationality of other stakeIn this business, the various stake holderIn this business, the various stakeholdersholderslike the employees, middlemen, shareholders,like employees, middlemen, share holders, partners belong to same country.partners belong to different countries.
