Q:

How does domestic business differ from international business?

A:

Quick Answer

Domestic business is often easier to conduct than international business because international business means combining two or more different countries, which have different cultures, politics, legal systems, religions and business procedures. In order to succeed in international business, understanding the other country is necessary because even if the business model seems sound in one country, it might not fly in another.

Know More
How does domestic business differ from international business?
Credit: Jon Feingersh Blend Images Getty Images

Full Answer

With domestic business, everyone is from the same country and generally has the same way of thinking; however, in international business, cultures collide, making international business more dynamic and challenging than domestic. Normal business factors such as market intelligence, competition, law and technology suddenly transform. The competition is generally harder, the intelligence and technology might not be available, and there are different laws to circumnavigate.

In addition to these business factors, culture plays a major role as well. Different cultures have different languages, beliefs, religions and routines. While one method might work perfectly in one country, it might actually offend people in another country. Even if the international business is established and the product or service is on the market, there are still more roadblocks, such as marketing to advertise the product or service. Instead of marketing in only one country, it needs to reach every country in which it is available, and different countries prefer different types of marketing.


Is this answer helpful?

Similar Questions

  • Q:

    What is organizational infrastructure?

    A:

    Organizational infrastructure is the collection of the business procedures and policies of a company based on defined responsibilities and duties of its employees. As a result of the continuous adjustments to the various external and internal requirements, companies need to have a well-organized organizational infrastructure to cope with these influences.

    Full Answer >
    Filed Under:
  • Q:

    How does culture affect international business?

    A:

    Culture influences many aspects of international business through differences in communication, transactions, negotiation and behavior. Characteristics of cultures, such as style of communication (direct or indirect), negotiation strategies and perception of business partners as friends or merely partners influence the compatibility or incompatibility of businesses with others in the international business arena.

    Full Answer >
    Filed Under:
  • Q:

    How can you conduct a business license search?

    A:

    The first step in a business license search depends on the information needed. If it is for startup reasons, the Small Business Administration is a good place to start. For licensing information for a specific business, government agencies are the ideal places to begin a search.

    Full Answer >
    Filed Under:
  • Q:

    What are inventory par levels?

    A:

    An inventory par level is a minimum quantity of a given item that a business must keep on hand. When the actual quantity falls below the par level, a new order is placed. The purpose of a par level is to prevent shortages while avoiding holding excess goods.

    Full Answer >
    Filed Under:

Explore