Thursday, 23 March 2017

The following are the major differences between domestic trade and international trade:-


1.Mobility in Factor Of Production
  • Domestic Trade: Free to move around factors of production like land, labor, capital and labor capital and entrepreneurship from one state to another within the same country
  • International Trade: Quite restricted
2.Movement Of Goods
  • Domestic trade: easier to move goods without much restrictions. Maybe need to pay sales tax,etc
  • International Trade: Restricted due to complicated custom procedures and trade barriers like tariff, quotas or embargo
3.Usage of different currencies
  • Domestic trade: same type of currency used
  • International trade: different countries used different currencies
4.Broader markets
  • Domestic trade: limited market due to limits in population, etc
  • International trade: Broader markets
5.Language And Cultural Barriers
  • Domestic trade: speak same language and practice same culture
  • International trade: Communication challenges due to language and cultural barriers

No comments:

Post a Comment

Making nitriles from aldehydes and ketones

Making nitriles from aldehydes and ketones Aldehydes and ketones undergo an addition reaction with hydrogen cyanide....