Difference between domestic and global business
Answers
domestic firms operate mostly or completely with in the United States. they may import supplies or export products but these activities normally represent a comparatively small share if total business activity.
domestic companies are typically governed by US security laws. their financial reports are normally constructed according to generally accepting accounting principles (GAAP).
GLOBAL BUSINESS
global firms have significant investments and profit centres in many countries with no single centre of dominance.
governance rules for global firms are generally determined by the laws of the official domiciliary of the parent company. some global firms create financial statements according to GAAP for US investors , but more commonly, primary parent company reports adhere to IFRS.
Answer:
Domestic Business
Meaning: Domestic Business refers to business transactions within the geographical boundaries of a country.
Participants in Business: People/ organisations within the country can participate in business activities.
Scope of Market: The scope of market is limited to national boundaries of a country.
Currency used: Currency of domestic country is used.
Mode of Transport: Goods are transported by roadways or railways.
Nature of Consumer: Consumers are relatively homogenous in nature.
Global Business
Meaning: Global Business refers to business transactions beyond the geographical boundaries of a country.
Participants in Business: People/ organisations outside the country can participate in business activities.
Scope of Market: The scope of market is very wide and extends beyond the boundaries of a country.
Currency used: Currencies of foreign countries are used.
Mode of Transport: Goods are transported by airways or waterways.
Nature of Consumer: Consumers are relatively heterogeneous in nature.