The two differences between domestic and international business are:
| Basis of difference | Domestic Business | International business |
| 1. Territorial limits | Domestic business takes place between the geographical boundaries of a nation. In other words, domestic business takes place between buyers and sellers of the same nation. | International business takes place between different nations. In other words, the buyers and sellers in international business belong to different nations. |
| 2. Homogeneity or heterogeneity of markets | Domestic markets are relatively more homogeneous in nature. | International markets are heterogeneous in nature. |
