Difference between Domestic and International Business – Fundamentals of Entrepreneurship | Management Notes

Difference between Domestic and International Business
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Fundamentals of Entrepreneurship
Management Notes

Domestic Business is defined as the business whose economic transaction is conducted within the geographical limits of the country.International Business refers to a business which is not restricted to a single country, i.e. a business which is engaged in the economic transaction with several countries in the world.All enterprise, whether domestic or international, and in all sector, have the same business aims; which is to be successful in its functions in order to be able to stay operational.Following are the points that clearly explains why domestic business is different from international business.

S.No.

Domestic Business

International Business

1. Domestic Business is one whose economic transactions are conducted within the geographical boundaries of the country. International business is one whose economic transactions are conducted with several countries in the world.
2. There are few restrictions imposed while doing domestic business as it is subject to rules, law taxation,tariff and quotas of a single country. There are more restrictions imposed while doing international business subject to rules, law taxation, tariff and quotas of many countries .
 3. Domestic Business requires comparatively less capital investment as compared to international business. International Business requires comparatively more capital investment as compared to domestic business.
 4. The quality standards of products and services provided by a domestic business is relatively low as compared to products and services provided by international business. The quality standards of products and services provided by international business is very high as compared to products and services provided by domestic business.
 5.  Domestic Business deals with the single currency of the country in which it operates. International Business deals with multiple currencies of the world.
 6.  For domestic business, it is easy to conduct research for the business and cost is low as well. For international business,it is very hard to conduct research for the business and cost is high.
 7. In domestic business, there is free and easy movement of the factors of production.  In international business,the movement of production factors is limited.

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