What is international business? How is it differ from domestic business?
Answers
Hi
Answer of your question given below.
Trade which occurs between two countries internationally, is called international business.
it is differ from domestic business in following way.
1.The area of operation of the domestic business is limited, which is the home country. On the other hand, the area of operation of an international business is vast, i.e. it serves many countries at the same time.
2.The quality standards of products and services provided by a domestic business is relatively low. Conversely, the quality standards of international business are very high which are set according to global standards.
3.Domestic business deals in the currency of the country in which it operates. On the contrary, the international business deals in the multiple currencies.
4.Domestic Business requires comparatively less capital investment as compared to international business.
cheers.
Answer:
International Business
Meaning: International 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.
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.