Difference Between Domestic and International Trade

Basis Domestic Trade International Trade

Nationality of Under this person of one Under this person from

Buyers and nation work in their different nations works in the
Sellers respective domestic market. international market.

Nationality of Stakeholders like suppliers, Stakeholders like suppliers,

Other producers, employees, producers, employees,
Stakeholders Middleman, etc. are of the Middleman, etc., are of
same nation. different nations

Mobility of Factors of production like Factors of production like

Factors of capital and labour are capital and labour are mobile
Production mobile across one nation. across the different nation.

Heterogeneous Usually, customers are Customers are not

Customers homogeneous in the homogeneous in the
domestic market international market due to a
different religion, caste,
language, etc.

Risks Under this one nation is This may be a barrier to

subject to the political risk international trade as different
of its respective nation. nations have different political
risks.

Policies These are subject to These are subject to different

different policies and policies and regulations, laws
regulations, laws of a single of multiple nations.
nation.

Currency Only one currency is There is involvement of more

involved. than one currency.