International versus Domestic Entrepreneurship :Factors that are different

Although there is a similarity between international and domestic entrepreneurship about cost , sales and profit but the variation of relative factors such as Economics, Politics , Culture and Technology that differentiate Domestic from International Entrepreneurship(Hisrich,2013,p.8)

Economics

In a Domestic business strategy , the entrepreneur focus on the specified level of economic development in domestic country. Also , the whole nation is more or less well prepared in a particular financial scheme with same exchange. On the other hand , in a International business strategy , the entrepreneur has to deal with exchange assessments , distinctions in level of financial improvement , management(Government) policies  , banking , business enterprise , capital advertising along with allotment arrangement. According to these issues differentiate the business plan and method of domestic from international entrepreneurs.

Stage of Economic Development

Such fundamental infrastructures as roads , banking conveniences as well as schemes, electricity ,communication systems , a well urbanized legal structures and industry or morals and standards maybe the entrepreneur does not have to worry about in US .But in order to go global as an international entrepreneur , have to make plans or method to deal with these factors. Also , these factors are vary grateful in other countries and successfully effect in international business rather than domestic.

Balance of payments

A country's stability of expenses  have an impact on the assessment of its exchange  plus this assessment of one nation's exchange have an effect on the commerce contracts among the nation's .For example, Italy had been suffering from balance payments a few years ago and if they stopped the inflation that would have been halted overnight . On the other hand the principal rescuer US had been suffered the same problem. Also India and  The Great Britain had the same problem(Hazlitt,2011,p.2-40).

Type of Economics

The suitable negotiating is individual of the several complications that have an effect on in doing commerce in developing as well as transit nations. For example, US weapons exporters are alone estimated complete about $4 to $7 billion annually in defence offset transaction and in that case for some , it may over time strengthen the foreign competitors and also it effects the employment(Czinkota & Ronakeinen,2012)

Political-Legal Environment

One of the key problem of business plan in international marketing is combination of political and legal environment . On the other hand , it can create market opportunity for industrialists as well as for others too. For instance, US environmental have eradicated the opportunity of importing several European cars models. Furthermore, pricing fluctuation is one of the events that increase the prices of food , oil and other energy products. As an international entrepreneur , it comes to an attention that each element of business strategy can affect by the multiplicity of political legal environment. It hard to make move where as an international entrepreneurs , pricing decision are different from the domestic country where may be with no value added tax . Also , advertising strategy are different in different countries where claiming and being sued comes to mind. Furthermore, product decision are hard to make for an international entrepreneur in respect of labelling, packaging and ingredients. Also, the regulations principal business appointments fluctuate deeply more than 150 dissimilar authorized system as well as nationalized regulations.

 Civilizing Environment

The cultures are different in different countries and it affects the business plans in doing business global. For example , in US points of purchase are allowed but for other countries are not allowed. Another example of Lenovo . when they went to US, so they were having conversation to deal and at some point US were telling their terms and Chinese were like , "Shi,Shi,Shi" means "Yes, Yes,Yes".So US thought they were agreed to their term but it turned out they said yes ,yes to carry on the conversation , they were listening(Business+Strategy,2014). Some cultural environment bribes and corruption are common. On the other hand , sometimes it hard to find a translator.

Technological Environment

Same as culture technological environment are different in some counties. Especially, if the entrepreneur from develop country and go to developing country .Products normally created which based on the country's infrastructure and condition operating in the country. For such an  instance,  It seems European  designer do not assume as US car designer that wider road and less expensive gasoline.

 Local Foreign Competition

When a foreign company enters in to the market , they have to face local established company . The domestic company often stand as a obstacle or fence with their known customer and products  for a foreign company. Furthermore, It is hard to compete with domestic company where the country has a "Buy National" attitude. As a result, The international entrepreneur find it difficult make the right decision.

Human resource strategies

HR strategies differentiate from domestic to international Entrepreneurship .Recruitment, Legal issues and Management involves in HR strategies which domestically can be set up as same for all future location in same manners(AzCentral,Nd). As a result , it makes easier for to deal with the risks within the company. On the other hand,  setting foreign outsourcing is major concern for HR in an international environment. Also managing different organizational management structure, recruiting employee and legal issues are major concern(AzCentral,Nd). Because different country have different laws and management structure , so its hard to follow all the rules and also if its been followed manager has to make sure its been following according to law and properly.

Environments that differentiate entrepreneurship

According to Ball et al  (2012,p.11)as an entrepreneur there are three kinds of

forces of environment have to deal with and those forces of environment differentiate from domestic to international entrepreneurship. The three types of milieus are the home environment , the overseas environment and the global environment

The Domestic Environment

In the home atmosphere the vigour that occur in the home country that pressure the firm as well as the improvement of the industry. There are the vigour as an domestic entrepreneur is familiar with .Entrepreneur of domestic country often find it difficult to expand their business in overseas.For example,  the government may restrict the overseas investment to reduce its outflow ,if the home country suffers from currency shortage.

The Foreign Environment

Domestic environment forces and the foreign environment forces are bit similar except foreign environment forces happen outside of the country. Although they operate differently for some reason. It seems that foreign forces are difficult to asses. As an foreign Entrepreneur , face forces like legal and political issues. There is a good example of Mexico 1988, when they had a regulation keeping out outsiders or overseas from having a majority attention in a Mexican corporation(Goldman et al,2014).But there was a clause that if the investment contributes to helps the nation welfare. As a result under this clause company like IBM ,EATON were very successful to establish completely possessed  contributory under this section. Furthermore, labour force and culture make fence to decision making flexibility for managers .

 The International Environment

As an international entrepreneur decision making is really hard to maintain . So the mangers not only has to look after domestic forces, also has to look after foreign environment as well. For example, if managements agrees to settle down one foreign labour demands , then they have to settle down one more contributory due to the propensity of unification to replace information across boundaries. Moreover, international mangers not familiar with the cultures of overseas countries. So they had to research and learn about the culture before entering the market , but even though sometimes its hard to cope with cultural meaning.

 New Ventures

There is a difference between international new venture and domestic new ventures when it comes to entrepreneurship. The seeking business or opportunity , sales by using resources in different countries or overseas is INV(International new ventures) according to Oviatt and McDougall,1994 cited in McDougall et al(2003).There are some issues that force them to drive  internalisation ,trade-offs, technology effects and performance effects (McDougall et al,2003).However, domestic new ventures are only operate in domestic market and it has no international revenue. According to McDougall et al , they argued in their study that Domestic New Venture can be distinguished fro International New Ventures depending on entrepreneurial team experience ,strategy and industry. The entrepreneurial team of domestic new ventures will be less experience than International new ventures of entrepreneurial  team , such as higher marketing technical experience. Also Liont(1972) cited in McDougall et al (2003) , pointed out that entrepreneurs learn profit and loss from top prior experience and that makes different between international entrepreneurship and domestic entrepreneurship.

There has been many researches done over the years and years about entrepreneurship .The entrepreneur term come from an idea to help people exchanging money and it grows by using resources .But when it comes to International and Domestic Entrepreneurship, there are so many factors that differentiate both of the term such as foreign direct investment ,HR strategies, payment, cultures and economy, Furthermore, the environmental factors also make an obstacle between domestic and international entrepreneurship .Also the new ventures between international and domestic make a difference .Entrepreneurs learns form top prior experience and also the entrepreneurial team are less experience as it comes to domestic new venture. Also domestic new venture doesn’t have any international revenue. There are so many difference between International and Domestic Entrepreneurship.