Major Difference between Domestic and International Business

 

	Basis	Domestic business	International business
1	Nationality of buyers and sellers	People or organisations from one nation participate in domestic business transactions	People or organisations of different countries participate in international business transactions.
2	Nationality of other stakeholders	Various other stakeholders such as suppliers, employees, middlemen, shareholders and partners are usually citizens of the same country.	Various other stakeholders such as suppliers, employees, middlemen, shareholders and partners are from different nations
3	Mobility of factors of production	The degree of mobility of factors of production like labour and capital is relatively more within a country	The degree of mobility of factors of production like labour and capital across nations is relatively less.
4	Customer heterogeneity across markets	Domestic markets are relatively more homogeneous in nature	International markets lack homogeneity due to differences in language, preferences, customs, etc., across markets.
5	Differences in business systems and practices	Business systems and practices are relatively more homogeneous within a country.	Business systems and practices vary considerably across countries
6	. Political system and risks	Domestic business is subject to political system and risks of one single country.	Different countries have different forms of political systems and different degrees of risks which often become a barrier to international business.
7	Business regulations and policies	Domestic business is subject to rules, laws and policies, taxation system, etc., of a single country.	International business transactions are subject to rules, laws and policies, tariffs and quotas, etc. of multiple countrie
8	. Currency used in business transactions	Currency of domestic country is used.	International business transactions involve use of currencies of more than one country.