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What Are Some of the Ways International Business Differs From Doing Business Domestically?

Doing business internationally has a lot of potential to be profitable, but it can also be more complicated than doing business domestically. Companies need to understand the differences between international and domestic business in order to be successful.

International Businesses

International businesses must comply with the laws and regulations of the country they are doing business in. This includes laws related to taxes, labor, and environmental regulations.

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Additionally, companies must also navigate different currencies, cultural differences, and language barriers.


When conducting business overseas, companies must pay both corporate income tax and local taxes in the country of operation. Additionally, many countries have taxes related to imports and exports. Companies must also be aware of Value Added Tax (VAT) which is often charged when goods are sold in a foreign country.


Currency exchange rates can have a significant impact on a company’s bottom line. Companies must be aware of exchange rates so they can accurately price their products and services in the local currency. Additionally, companies must be aware of any currency restrictions imposed by the foreign country.

Cultural Differences

Cultural differences can have a significant impact on how business is conducted. Companies must be aware of local customs, traditions, and etiquette.

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Additionally, companies must also be aware of any religious or political issues that could affect the way business is conducted.

Language Barriers

Language barriers can be a major obstacle when doing business internationally. Companies should take the time to learn the language of the country they are doing business in or hire someone who is fluent in the language. Additionally, companies should be aware of any dialects or regional variations of the language.


Doing business internationally is different from doing business domestically. Companies must be aware of the laws, regulations, currency, cultural differences, and language barriers of the foreign country. Taking the time to understand the differences can help ensure the success of international business ventures.