Domestic Business International Business Geographic Area Its carried out within the national or itis carried out across borders and national geographic borders of the country territories of acountry Restrictions Tariffs and quotas are not present and Many restrictions are imposed while doing very few local restrictions are imposed on business internationally or entering a a domestic business foreign market e.g. Tariff and non-tariff barriers, exchange controls, local taxes etc. Culture Thereis less difference in the market ‘The market culture widely varies among culture of local areas and regions within a different nations and regions country. The market culture is relatively uniform Risk Risk factor isless Risk factor ishigh Curreney ‘A domestic business deals in a single An international business deals in multiple currency currenciesHuman Resource ‘A domestic business can succeed with Multilingual, multi-strategic and human resource with minimum skill and multicultural human resource is necessary knowledge for smooth operations of an international business Employees are usually fromthesame Global human resource practices are carried country out in an international business Promotion Domestic marketing and advertising Marketing and advertising strategies vary strategies areused from country to country due to language barriers Pricing Same price is charged for similar products Price differentiation is carried out Investment Less capital investments involved Huge capital investment is involved Quality Quality standards are low Quality standards are very high. Global standards are set Regulations ‘Only local regulations are applicable International and host country regulations are applicableRegulations Only local regulations are applicable International and host country regulations are applicable Research It is easy to conduct business research, Itis very difficult and costly. Reliability of demand analysis and customer survey information depends upon the ual country Cost Advantage Do not enjoy Cost advantage Advantage of location economies and cheap resources are available Environment A domestic business is only affected by Domestic, foreign and international the variables in the domestic environment environment factors affect an international business Development The level of development may be same. Each country may be at a different level of throughout the domestic market development