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Richard Bendix is the marketing manager at a firm that makes and sells high-quality
prefabricated houses. He believes that there is little difference between his homecountry
market and foreign markets, and that he can use the same methods for selling in Asia or
Latin America as he does in his home country. Write a memo in which you explain to
Richard the differences between domestic and international business. Explain the risks
and other differences that Richard’s firm will likely encounter if it expands abroad.

Answer

Business is when goods and services are traded to consumers by what kind of company. This
may be for profit or for non-profit. The traditional business model was once known as
domestic business. These businesses are carried out domestically, which means that all
production, goods and services are carried out within the border. When a domestic company
began to buy resources in other countries, it was no longer considered a domestic business,
but now an international business. International business is when a product or service crosses
a border into another country.

Doing an overseas business is very different from doing a domestic business. International
business is surrounded by a variety of risks not found in the domestic market. These risks
include cultural differences, exchange rate fluctuations, political and legal fluctuations,
environmental constraints, and trading policies. The difference between the domestic country
and the target international market is small, but a thorough investigation is still needed. Then,
you can analyze the various risks mentioned above and successfully enter new overseas
markets.