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.)