Comparison between domestic and foreign trade
Comparison between domestic and foreign trade are several differences between domestic and foreign trade. Domestic trade refers to purchasing and selling of commodities within geographical limits of your country. Foreign trade refers to the purchase and sale of goods beyond your country’s geographical limits. Domestic trade involves only one country while foreign trade involves more than one country. When engaging in foreign trade, you have to use foreign currency which is contrary to what you expect with domestic trade. Moreover, domestic trade involves lesser risks compared with foreign trade. Some of the risks to expect with foreign trade include transit risk, currency fluctuations risks and the fluctuations in demand. Domestic trade involves lesser formalities and procedures while to conduct foreign trade, you will have to go through many formalities and long procedures. Governments do not restrict domestic trade except for some goods. However, the government has to strictly mo