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Differences Between International and Domestic Business (Key Differences…
Differences Between International and Domestic Business
Definitions
Domestic Business - trade which takes place within the geographical boundaries of the country is called domestic business.
International Business - trade which occurs between two countries internationally, is called international business.
Trade refers to the exchange of goods and services for money, which can be undertaken within the geographical limits of the countries or beyond the boundaries.
Domestic Business Advantages. :star:There are many privileges which a domestic business enjoys.
Lower transaction costs,
Shorter time period between production and sale of goods.
Lower transportation costs.
Feasibility of small-scale enterprises.
Etc.
Specific Differences for doing business in the Netherlands :star:
High level of tolerance and respect for other person's opinions
High level of education and literacy among the population
Some emerging negative responses to outside or non-Dutch groups
Highly mannered - while tolerant, socially aware and do not like boasting or presumptuous talk.
emphasis on family and good work/life balance
average 36-40 hour work week and sort of a union style work culture.
Common practice to use interns in what is called a Stage
cautious and pragmatic - look for consensus in their decisions when possible
International Business Advantages. :star:
Large customer base from different countries.
Expands the trade and investment among countries.
Does not have to depend on a single country for resources.
Drawbacks : :red_flag:
Tariffs
Quotas
Political factors
Socio-cultural factors
Economic factors
Key Differences to consider between domestic and International business :star:
Mobility of production factors
Cost of research
Nature of customer
Restrictions - laws, customs, tariffs, etc
Capital Investments are different
Currency - single versus multiple
Quality standards
Physical area sizes
Geographic limitations