What is the difference between foreign trade and domestic trade?
The legal basis of domestic trade is mainly the domestic foreign trade refers to the international internal trade domestic trade occurs between enterprises foreign trade is a country and region with other countries and regions in the exchange of goods and services. From the point of view of a country this exchange activity is called foreign trade. A: international trade and domestic trade have a certain **** the same sex, but there is a certain degree of difference. ****similarity is manifested as follows: (1) the same position in social reproduction. International trade is engaged in the exchange of goods and services between countries, domestic trade is the exchange of goods and services within the national boundaries, although the scope of activities are different, but are commercial activities, are in the process of social reproduction of the exchange process, in the process of social reproduction in the intermediary position. (2) have *** the same way of commodity movement. International trade and domestic trade transaction process is similar, but the way of commodity circulation movement is exactly the same, namely: G-W-G . The purpose of the business of the business is to obtain more business profits through exchange. (3) The basic functions are the same, are subject to the influence and constraints of the laws of commodity economy. The basic function of both international trade and domestic trade is to medium into commodity exchange, i.e. to do business. Other activities such as financing, storage, transportation, customs clearance must serve for it; At the same time, all must follow the basic laws of commodity economy, such as: the law of value, the law of supply and demand, the law of saving circulation time and so on. These laws will affect the international and domestic trade at a certain time and degree. Whether engaged in international, or domestic trade must follow these economic laws, must not violate. The main differences are: (1) language, laws and customs are different. International trade activities will first encounter differences, must first overcome these obstacles, otherwise it will not be able to properly trade negotiations, signing, trade disputes, market research. Although domestic trade will also encounter some differences in language, customs and habits, but the difference is much smaller. (2) Currency, weights and measures, customs and other systems are different between countries. International exchange of goods, will encounter the need to pay in foreign currency and exchange rate and often changes, as well as the weights and measures between countries, customs system are different and many other problems, so that the international exchange of goods activities are complicated. In contrast, domestic trade is much simpler. (3) The economic policies of different countries are different. Each country's economic policy is mainly for the role of their own economic development, but will affect the development of international trade to a certain extent, and many policies will be due to different economic situations, different rulers and changes. There are financial policy, industrial policy, import and export management policy, tariff policy and so on, engaged in international commodity exchange activities must study these policies. Domestic trade research is much less. (4) The risk of international trade is greater than domestic trade. Commodity exchange is inseparable from the competition naturally exists considerable risk. But in contrast, the risk of international trade is more and more big. Its performance in the credit risk, commercial risk, price risk, exchange rate risk, transportation risk and political risk and so on. Your friend trading to the dollar exchange rate risk should be regarded as foreign trade