Stages of Internationalization of Business
Main Difference Between Domestic and International Business
Main Difference Between Domestic and international Business are as follows : S.No | International Business | Domestic Business | 1. | It is extension of Domestic Business and Marketing Principles remain same. | The Domestic Business Follow the marketing Principles | 2. | Difference is customs, cultural factors | No such difference. In a large countries languages likeIndia, we have many languages. | 3. | Conduct and selling procedure changes | Selling Procedures remain unaltered | 4. | Working environment and management practices change to suit local conditions. | No such changes are necessary | 5. | Will have to face restrictions in trade practices, licenses and government rules. | These have little or no impact on Domestic trade. | 6. | Long Distances and hence more transaction time. | Short Distances, quick business is possible. | 7. | Currency, interest rates, taxation, inflation and economy have impact on trade. | Currency, interest rates, taxation, inflation and economy have little or no impact on Domestic Trade. | 8. | MNC’s have perfected principles, procedures and practices at international level | No such experience or exposure. | 9. | MNCs take advantage of location economies wherever cheaper resources available. | No such advantage once plant is built it cannot be easily shifted. | 10. | Large companies enjoy benefits of experience curve | It is possible to get this benefit through collaborators. | 11. | High Volume cost advantage. | Cost Advantage by automation, new methods etc. | 12. | Global Standardization | No such advantage | 13. | Global business seeks to create new values and global brand image. | No such advantage | 14. | Can Shift production bases to different countries whenever there are problems in taxes or markets | No such advantage and get competition from some spurious or SSI Unit who get patronage of Government. |
Table 1.1: Difference between Domestic and
Main Difference Between Domestic and international Business are as follows : S.No | International Business | Domestic Business | 1. | It is extension of Domestic Business and Marketing Principles remain same. | The Domestic Business Follow the marketing Principles | 2. | Difference is customs, cultural factors | No such difference. In a large countries languages likeIndia, we have many languages. | 3. | Conduct and selling procedure changes | Selling Procedures remain unaltered | 4. | Working environment and management practices change to suit local conditions. | No such changes are necessary | 5. | Will have to face restrictions in trade practices, licenses and government rules. | These have little or no impact on Domestic trade. | 6. | Long Distances and hence more transaction time. | Short Distances, quick business is possible. | 7. | Currency, interest rates, taxation, inflation and economy have impact on trade. | Currency, interest rates, taxation, inflation and economy have little or no impact on Domestic Trade. | 8. | MNC’s have perfected principles, procedures and practices at international level | No such experience or exposure. | 9. | MNCs take advantage of location economies wherever cheaper resources available. | No such advantage once plant is built it cannot be easily shifted. | 10. | Large companies enjoy benefits of experience curve | It is possible to get this benefit through collaborators. | 11. | High Volume cost advantage. | Cost Advantage by automation, new methods etc. | 12. | Global Standardization | No such advantage | 13. | Global business seeks to create new values and global brand image. | No such advantage | 14. | Can Shift production bases to different countries whenever there are problems in taxes or markets | No such advantage and get competition from some spurious or SSI Unit who get patronage of Government. |
Table 1.1: Difference between Domestic and