Differences Between International and Domestic Business :, image, image,…
Differences Between International and Domestic Business :
Example: Cultural differences are found between any two countries so this is also an easy one to identify for most people. Australia has differing social expectations as well as different ways of communicating; they encourage eye contact and honest, direct, to the point conversations. This is often not seen in the United States; many don't like to continue to make eye contact for more than a few seconds and Americans like to create small talk to avoid silence. Arrogance is also deeply frowned upon in Australian culture. There are also differences in slang, what is appropriate to talk about with others and touching others.
Level of Competition
Example: Australia is one of the larger countries that compares to the United States in size, however, there are still limitations to the level of competition in each country. In the United States people and businesses alike are extremely competitive and have a large amount of competition. Australia also has competition, but due to the lesser population, there are less competitors to push others to do more and better in their industry. Different levels of competition results is different timelines for project to be completed as well as less encouragement to produce better things in general.
Politics, Government, and Legal Systems
Example: Australia's legal/government system is based on the English model. This is a much different model than what the United States uses for their legal/government system. Businesses would need to educate themselves on the different laws and systems in the country prior to doing business in the country
Example: Technology is a fairly obvious difference between the United States and Australia. In general, the United States has more people that have some form of a smart or high-end technological device. This also relates to the different levels of competition. Australia doesn't have as much of a push for innovative, new technology from their population.
Area of Operation
Example: Quality standards can be greatly impacted in different countries. This is dependent on the customer opinions and how often they feel is reasonable to purchase the product after it breaks or is defective. This would also depend on availability as well as the demand for items. Australia being smaller and less technologically advanced, results in the consumers not pushing for more than they know they want, which could be fairly limited for some.
Example: Australia's currency is the Australian Dollar (AUD) and the United States operates with the American Dollar (USD). This results in having to know currency exchange rates and how Australia prices their products/services (tax included in or excluded from the retail cost)
Example: Australia has differing trends that impact customer opinions and what they demand from products; the United States also has this difference in products. This difference would cause businesses from the US to do extensive market research prior to selling an item in Australia and vice versa.
Factors of Production