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
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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
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3.Usage of different currencies
- Domestic trade: same type of currency used
- International trade: different countries used different currencies
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4.Broader markets
- Domestic trade: limited market due to limits in population, etc
- International trade: Broader markets
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5.Language And Cultural Barriers
- Domestic trade: speak same language and practice same culture
- International trade: Communication challenges due to language and cultural barriers
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