Basis 

domestic business 

international business 

1. Nationality of

buyers and seller.

1. People or organisations

from one nations.

participate in domestic in

business transactions.

1. People or organisations of different count-

ries participate in international business transactions.

2. Nationality of 

other share holder

2. various other share holder holders such as suppliers,

employers middlemen,

middlemen partners are

usually citizens of the same country.

2. Various other stakeholder

such as suppliers, shar-

eholders and partners

shareholders and employees, are from different nations.

3. Mobility of

factors of production

3. The degree of factors of production like labour and capital is relatively

more 'within a country.

3. The degree of factors of production like

labour and capital across

national is relatively less.

4. Customer

heterogeneity across markets.

4. Domestic markets are

relatively more homogenous

in nature.

4. International market lack homogeneity due to differences in language, across markets.

5.Differences in

business systems practices

5. Business systems and

s practices are relatively more

relatively more drama cerentry.

5. Business systems and

practices very considerably across countries.

6. Political system and Risk

6. Domestic business is

subject to political system

and risks of one single country.

6. Different countries have different forms of

political systems and different degree of risks

which often become a barter to international

business.