What is a key difference between domestic and international business?

A key difference between domestic and international business lies in the scope of their operations. Domestic business refers to commercial activities that occur within the borders of a single country. This means that all transactions, investments, and operations are conducted in accordance with that country's laws and regulations, and they typically involve local suppliers, customers, and market conditions.

On the other hand, international business encompasses transactions that cross national borders. This includes exporting and importing goods and services, foreign investment, partnerships with international firms, and navigating multiple legal and regulatory environments. International business involves complexities such as currency exchange, cultural differences, and trade regulations, which are not factors in domestic business.

Thus, the correct answer highlights the fundamental distinction between the two types of business practices: domestic business operates within one nation, while international business operates across multiple nations.