Major differences between domestic business operations and international business operations - Assignment Example

Differences between Domestic and International Business Operations Differences between Domestic and International Business OperationsIntroductionAccording to McEarchen (2012), the national economy depends on the income generation by the national residents. This income includes the industrial activities that generate money to boost the country’s economy. The advancing technology and market demand has influenced business to expand their operation into global market. This has enhanced the opportunity to accessibility of product or service and consumer heterogeneity.

Difference between domestic and international business are scope of operation, political relations, currency differences and legal regulations to entry (Dunning, 2012). Domestic business Sanderson Farms, Inc. refers to an American national company that specializes in the production, processing, distribution, and marketing of poultry and other related food items. Started in 1955, the company has grown to become among the leading American companies that specialize in the food and supply industry (Sanderson Farms®, n.d). the company competitive advantage is the ability to supply in all states in America.

It has a huge local network due to the provision of natural products. The advantage of its operational scope is that domestic currency used for business operation. The local business regulations are clearly stipulated therefore no barrier to entry. However, global network distribution enhances the profitability, larger customer database and enhances the adaptation to technology to improve management of business.International business Shell refers to a multinational petroleum company formed in 1907.

It has expanded its network of operation worldwide. Forbes has considered it as 11th ranked market influencer in performance (Shell©, 2015). The scope of operation worldwide market therefore enhanced political affiliation with its Dutch for business consistency. Consequently, the market popularity and demand has enabled easier entry to global market. However, the currency fluctuation may affect the business profitability due to the volatility factors. Nevertheless, the large consumer network, economic productivity and technology advancement gives competitive advantage to the firm (Dunning, 2012).

Reference ListDunning, J. H. (2012). International Production and the Multinational Enterprise (RLE International Business). New York, NY: Routledge Library.McEachern, William A. (2012). Economics: A contemporary introduction, 9e. Mason: South-Western Cengage Learning. Sanderson Farms ®. (n.d.). Retrieved March 3, 2015, from http://www.sandersonfarms.com/ Shell©. (n.d). Retrieved March 3, 2015, from http://www.shell.com/