What is international business? How is it different from domestic business?



Q.1:- What is international business? How is it different from domestic business?

Answer:-

Manufacturing and trade beyond the boundaries of one’s own country is known as international business. It involves not only the international movements of goods and services, but also of capital, personnel, technology and intellectual property like patents, trademarks, know-how and copyrights.



It is different from domestic business in following ways:

 

Domestic business International business
Trade within the national boundaries of a country. Trade between two or more countries.
People or organisations from one nation participate People or organisations of different countries participate
More homogeneous in nature. Lack homogeneity due to differences in language, preferences, customs, etc., across markets.
It is subject to political system and risks of one single country. It have different forms of political systems and different degrees of risks which often become a barrier to international business.
Subjected to rules, laws or taxation system of one country. Subjected to rules, regulations and laws of many countries.
Currency of domestic country is used. Transactions involve use of currencies of more than one country.