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International Business and Domestic Business (International Business…
International Business and Domestic Business
International Business
Trade that occurs between several countries globally; more difficult with larger customer base
Comparisons to domestic business:
Currency:
deals with multiple types
Capital Investment:
quite large
Quality Standards:
high
Restrictions:
many (e.g. rules, law taxation, tariff, & quotas)
Operation area:
the world; vast
Customers:
heterogeneous (many cultures and races)
Mobility of Factors of production:
restricted
Research:
challenging; research may vary and be unreliable
Buyer/Seller:
global
Culture:
deals with many; good research is needed
Competition:
more dynamic & complex
Technology/Logistics:
can vary; depending on country low vs. high
India
Comparisons to U.S.
Technology/Logistics:
some software industries; no statistics available; workforce is mostly agricultural (47%)
Restrictions:
less regulated
Currency:
1 Rupee = $0.014
Customers:
3 races (Indo-Aryan 71%), multiple languages (Hindi 43.6%), 5 religions (Hindi 43.6%); 21.9% under poverty line
Investments:
low to some cultural issues (discrimination)
Competition:
less interest in investing
Culture:
greets with hands together and bows
Domestic Business
Trade that takes place within geographical boundaries of a country; easier with smaller customer base
Comparisons to international business:
Currency:
Single
Capital Investment:
less
Quality Standards:
quite low
Restrictions:
few; subject to rules of a single country
Operation area:
within country; limited
Customers:
mostly homogeneous
Research:
Easy
Mobility of Factors of Production:
free
Buyer/Seller:
internal or same country
Culture:
deals with singular
Competition:
less complex
Technology/Logistics:
consistent
United States
Comparisons to India
Technology/Logistics:
large part of overall businesses (37.3%)
Restrictions:
heavily regulated
Currency:
$1 = 71.58 Rupee
Culture:
greets with a handshake
Investments:
high
Competition:
more favored for investment
Customers:
7 races (White 72.4%), multiple languages (English 78.2%), 12 religions (Protestant 46.5%); 15.1 under poverty line