Is there a difference between international trade and domestic trade?

The difference between international trade and domestic trade is as follows:

1. The external environment and conditions are different

International trade is based on the economic structure and production conditions. , commodity exchange between countries with significantly different productivity levels, economic policies, industrial policies, and trade policies.

International trade means doing business with foreign businessmen, and language barriers must be overcome. Countries around the world have different living customs and habits, as well as different religions and beliefs. These will lead to differences in consumption habits. To engage in international trade, you must keep abreast of world market dynamics, understand the credit status of trading partners, and be familiar with the legal system and relevant rules of the target market.

Domestic trade is the exchange of goods within a country under the same economic and legal system. The differences in language and customs are small. It is much easier to understand all aspects of information in the same market.

2. The requirements for products and the complexity of transactions are different

The business habits of various countries are different, and the understanding of the rules and regulations in international trade may also be inconsistent, which requires both parties to Communicate, seek consensus, and avoid trade disputes. Countries around the world have customs and have many regulations for the import and export of goods.

The import and export of goods must undergo customs declaration procedures, and the type, quality, specifications, packaging and trademarks of exported goods must also comply with various relevant regulations of relevant countries. Cross-border cargo transportation and insurance, international settlement and exchange must also comply with Increased complexity of international trade.

3. The degree of influence of economic policies is different

The economic policies of various countries mainly play a role in their own economic development, but they will also affect international trade to a certain extent. Development, and many policies will change due to different economic forms and different rulers. These include financial policy, industrial policy, import and export management policy, and tariff policy. International trade is affected by domestic and foreign economic policies, while domestic trade is mainly affected by domestic economic policies.

4. Different risks

International trade has greater risks than domestic trade. The risks of international trade mainly include credit risk, commercial risk, exchange risk, transportation risk and political risk.