Key Differences of International Business and Domestic Business. …
Key Differences of International Business and Domestic Business.
Geographical Limits of the Country
Economic Transactions of Domestic Business are limited within one country.
International Business is not restricted to one country's geographical limits.
Example: Steak from Argentina normally runs as an International Business, selling to outside countries and not just Argentina's civilians.
Area of Operation
Domestic Business has a restricted area of operation.
The area of operation for International Business serves many countries at one time.
Example: McDonald's being in Argentina but starting as a U.S company
Quality of Standards
Domestic quality of standards are lower due to one single country of restriction
International Businesses are set to higher standards on a global level.
Currency of Trade
Domestic Business operates with the origin currency
International Business deals in multiple currencies
Example: Argentina Peso, U.S Dollar, and all other currencies from other countries for International sales.
Levels of Restriction
Domestic Business has few: Taxation, Law, Rules, etc.
International runs the complication of those same restrictions and concerns, but for ALL countries involved with the process.
Example: Selling foods or agriculture from Argentina to other countries must follow regulations and safety standards for the importing country.
Domestic Research is relatively easier than conducting research in multiple countries. The cost and labor included.
Example: Argentina spending habits
Example: Current U.S trends and how to better market cities.
Nature of Customers
Domestic/local customers are more or less the same with habits.
International customers will be much more unique as a whole. Different habits, different spending styles, much more variety, and so on.
Example: In the U.S, there may be a certain trend of fashion which is not quite as possible in Argentina. International companies will likely not market these specifics in Argentina promotions.