Main Difference Between Domestic and International Business
Main Difference Between Domestic and international Business are as follows : S.No
| International Business
| Domestic Business
| It is extension of Domestic Business and Marketing Principles remain same.
| The Domestic Business Follow the marketing Principles
| Difference is customs, cultural factors
| No such difference. In a large countries languages likeIndia, we have many languages.
| Conduct and selling procedure changes
| Selling Procedures remain unaltered
| Working environment and management practices change to suit local conditions.
| No such changes are necessary
| Will have to face restrictions in trade practices, licenses and government rules.
| These have little or no impact on Domestic trade.
| Long Distances and hence more transaction time.
| Short Distances, quick business is possible.
| Currency, interest rates, taxation, inflation and economy have impact on trade.
| Currency, interest rates, taxation, inflation and economy have little or no impact on Domestic Trade.
| MNC’s have perfected principles, procedures and practices at international level
| No such experience or exposure.
| MNCs take advantage of location economies wherever cheaper resources available.
| No such advantage once plant is built it cannot be easily shifted.
| Large companies enjoy benefits of experience curve
| It is possible to get this benefit through collaborators.
| High Volume cost advantage.
| Cost Advantage by automation, new methods etc.
| Global Standardization
| No such advantage
| Global business seeks to create new values and global brand image.
| No such advantage
| Can Shift production bases to different countries whenever there are problems in taxes or markets
| No such advantage and get competition from some spurious or SSI Unit who get patronage of Government.
Table 1.1: Difference between Domestic and...
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