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Answer» Differences between International Business and Domestic Business | Domestic Business | International Business | | Both the buyers and the sellers are from the same country | Buyers and sellers are from different countries | | Various stakeholders such as suppliers, employees, middlemen, shareholders and partners are usually citizen of the same country | Various stakeholders such as suppliers, employees, middlemen, shareholders and partners are from different nations | | The factors of production Like capital, labour and raw material can be moves freely within the country | There are restriction on the free mobility of factors of production across countries | | Domestic markets are relative more homogenous in nature | International markets lack homogeneity due to differences, in languages, preferences customs etc across markets. | | Business systems and practices are relatively more homogeneous within a country | Business systems and practices vary considerably across countries. | | It has to face the political system and risk of only one country | Different countries have different forms of political systems and risk | | Business laws, regulations and economic policies are uniformly applicable within a country | Business laws, regulations and economic policies are differ widely among nations. | | Currency of domestic country is used | They use different currencies for business transactions. |
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