1. International Business is a transaction between two or more countries and is primarily based in a single country, but acquires some meaningful share of its resources or revenues (or both) from other countries. It comprises a large growing portion of the world's total business. Although it's riskier and more expensive it allows for greater variety on different products and services at lower prices.
Domestic Business is a transaction within the home country; it acquires all of its resources and sales, and all of its products or services within a single country. A well functioning domestic economy will allow for smooth operations for International Business.
The difference between international and domestic business is, first, when international business takes place it affects a variety of components such as profits, employment, wages, and security. These important aspects are sometimes negatively impacted and affect the citizens of the home country. On the other hand, domestic business generates jobs and promotes economic security. According to Daniels, Radebaugh, and Sullivan most companies engage in international business to expand sales, acquire resources, and minimize risk.
When a company wants to expands sales it also expands its competitive realm. The company steps outside the boundaries of its origin to maximize profits and also use it as a balancing factor. For example, if sales are down domestically and sales are up internationally the company will not be at a loss. They actually create a competitive advantage to those companies who limit itself to domestic business only. There are policies and regulations on goods that are being shipped internationally. Engaging in domestic bus...
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Communication is a way of expressing thoughts and ideas that are delivered in a verbal or non-verbal manner. Most countries have a different language, dialect, and language interpretation. Sometimes having a language translator is not enough to coherently convey the initial meaning. Certain words translated in another language can mean something totally different from what the originator intended. There are also signs, symbols, and colors that send a "silent language" that may trigger an association with ones culture. So, when companies enter into a foreign market they have the have to know and understand the verbal and non-verbal cues when promoting its product. Overall, once adjustments are made and communication is accurately expressed, conducting international business should lead to the possibility of a successful business relationship.
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