Stages of Internationalization of Business

Topics: Currency, Economics, Inflation Pages: 3 (695 words) Published: May 21, 2013
Main Difference Between Domestic and International Business
Main Difference Between Domestic and international Business are as follows : S.No| International Business| Domestic Business|
1.| It is extension of Domestic Business and Marketing Principles remain same.| The Domestic Business Follow the marketing Principles| 2.| Difference is customs, cultural factors| No such difference. In a large countries languages likeIndia, we have many languages.| 3.| Conduct and selling procedure changes| Selling Procedures remain unaltered| 4.| Working environment and management practices change to suit local conditions.| No such changes are necessary| 5.| Will have to face restrictions in trade practices, licenses and government rules.| These have little or no impact on Domestic trade.| 6.| Long Distances and hence more transaction time.| Short Distances, quick business is possible.| 7.| 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.| 8.| MNC’s have perfected principles, procedures and practices at international level| No such experience or exposure.| 9.| MNCs take advantage of location economies wherever cheaper resources available.| No such advantage once plant is built it cannot be easily shifted.| 10.| Large companies enjoy benefits of experience curve| It is possible to get this benefit through collaborators.| 11.| High Volume cost advantage.| Cost Advantage by automation, new methods etc.| 12.| Global Standardization| No such advantage|

13.| Global business seeks to create new values and global brand image.| No such advantage| 14.| 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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