Difference b/w Domestic 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