DOMESTIC BUSINESS VS INTERNATIONAL BUSINESS

• DOMESTIC BUSINESS VS INTERNATIONAL BUSINESS
  
  INTERNATIONAL BUSINESS
• DIFFERENCE
• DOMESTIC

1. BUSINESS ARE CONFINED TO THE LENGTH AND BREADTH OF THE COUNTRY
2. DOMESTIC BUSINESS’S APPROACH IS ETHNOCENTRIC. IT DOES MEAN THAT DOMESTIC COMPANY FORMULATE STRATEGIES, PRODUCT DESIGN TOWARD THE NATIONAL MARKETS, CUSTOMERS AND COMPETITORS.
3. DESIGNING OF PRICES IS SIMPLE TASK AS IT IS PROFIT MAXIMIZATION OR SALES MAXIMIZATION
4. DOMESTIC BUSINESS TRANSACTIONS ARE CARRIED IN FAMILIAR CONDITIONS IN HOME COUNTRY.
5. BUSINESS DECISIONS ARE AFFECTED BY DOMESTIC CULTURE
6. AS THE EMPLOYEE ARE FROM THE SAME COUNTRY SO HUMAN RESOURCE MANAGEMENT IS SIMPLE.
7. ARE NOT SUBJECT TO EXCHANGE RATE RISK
8. FINANCE AND ACCOUNTING ISSUES ARE COMMON TO ALL THE BUSINESS FIRMS AND CAN BE EASILY HANDLED
9. MARKET STRATEGY ARE CREATED FROM DOMESTIC
10. PRODUCT PLANNING IS SIMPLE

• INTERNATIONAL

1. BUSINESS TRANSACTIONS ARE ACROSS THE NATIONAL BOUNDARIES
2. INTERNATIONAL BUSINESS CAN BE POLYCENTRIC,REGIONAL CENTRIC OR GEOCENTRIC
3. DESIGNING OF PRICE IS COMPLEX TASK. TRANSACTIONS ARE INTRA FIRM AND INVOLVE TRANSFER PRICING WHICH IS DONE TO REDUCE THE OVERALL TAX AND TARIFF BURDEN
4. IT IS AFFECTED BY ENVIRONMENT IN THE HOST COUNTRY
5. AFFECTED BY INTERNATIONAL CULTURE
6. AS IT INVOLVES EMPLOYMENT OF PEOPLE FROM VARIOUS COUNTRIES.IT IS MUCH COMPLICATED
7. SUBJECT TO EXCHANGE FOREIGN EXCHANGE RISK
8. COMPLEX
9. CREATED FROM INTERNATIONAL SCENARIO
10. COMPLEX