Domestic and International

Business

By:-Abhishek Kesherwani

Abhishek kesherwani

Domestic and International

Abhishek kesherwani

Commercial activities conducted within a nation or a commercial entity that conducts economic transactions inside the borders of its home nation. A domestic business typically has the advantage of only having to deal with its local currency, customs, culture, regulations and tax system.

International Business conducts business transactions all over the world. These transactions include the transfer of goods, services, technology, managerial knowledge, and capital to other countries. International business involves exports and imports.

International Business is also known, called or referred as a Global Businessor an International Marketing.

Domestic and International

Business

Abhishek kesherwani

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 like India, we have many languages.

Conduct and selling procedure changes

Selling Procedures remain unaltered

Abhishek kesherwani

International Business Domestic Business

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.

Abhishek kesherwani

International Business Domestic Business

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.

Abhishek kesherwani

International Business Domestic Business

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

Abhishek kesherwani

International Business Domestic Business

Global business seeks to create new values and global brand image.

o 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.

Abhishek kesherwani