5. • Difference in natural and geographical
conditions
• Mobility of factors of production
• Sovereign political entities
- imposition of tariffs and customs duties on imports and
export ,
- Quantitative restrictions like quotas
- Exchange control
- Imposition of more local taxes etc.
• Different legal systems
Differences between domestic and
International Business
7. Important Of IBE !
• Helps in Expansion
• Helps in managing product life cycle
• Technology Advantages
• New business opportunities
• Proper use of resources
• Earning Foreign exchanges
• Helps in mutual Growth
9. Need for IBE
• Causes the flow of ideas, services, and
capital across the world
• Offers consumers new choices
• Permits the acquisition of a wider variety of
products
• Facilitates the mobility of labor, capital, and
technology
• Provides challenging employment
opportunities
• Reallocates resources, makes preferential
choices, and shifts activities to a global level
10. • Trade between partners of regional trade
agreements
• Developing countries’ trade
• South-south trade
• Air cargo; Express cargo
• Global production network
• Intra – firm trade
• E-commerce