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Home trade is called domestic trade in some countries. These are the differences as seen by me.
1. For home trades, payments could be made in home currency only. Foreign trades are to be paid invariably in convertible currencies.
2. Home trades generally have no restrictions of movement within the country. In international trade, there are restrictions as to movement of specific goods to specified countries.
3. Home trades have taxes levied by the Government and local bodies. International trades have levies called customs duties. These invariably go to the Federal Government.
4. Documents for domestic trades are comparatively simple and easy to understand and follow. Foreign trades have a different set of documents which must be filed in every case.
5. Insurance of consignments sent on foreign trade are compulsory; in home trade it is optional.
6. Usually, foreign trades are preceded by payment or promises of payment made by international foreign exchange traders (also called Letters of Credit.) In domestic trades, payments are realised usually after the trade is executed. Depending on the credit rating of the parties concerned, even a simple promise is not taken. Letters of Credit in domestic trades is not common but not ruled out.
7. Credibility of parties can be got verified in foreign trades through the trade representatives of the countries involved in the transaction.
8. On receipt of consignment at a foreign country, the documents are handed over to the buyers only after payment is realised. Thereafter, the Banks concerned remit the payments to the sellers through normal international banking channels. In respect of domestic trades, bankers may or may not be the intermediaries. Payments can be directly sent to the sellers by the buying party.
9. Under the United Nation's charter, goods prohibited for specific countries cannot be sent to them by member countries. Penalties extending to boycott of trade with that country may follow. In domestic trades, such prohibitions do not exist. (Example: selling atomic energy raw materials to Iran, Iraq etc.)
10. International trades are further government by agreements between member countries of General Agreement on Tariffs and Trade. Domestic or home trades are not subject to such agreements.
What else can I help you with?
What is the difference between international trade and international finance?
international trade :exchange or business of goods and services across the bordersinternational finance :dependence on foreign countries to fund some activities or support economy
What are the differences between depositary receipts and common stock?
Depositary receipts are financial instruments representing ownership of shares in a foreign company, while common stock represents ownership of shares in a domestic company. Depositary receipts allow investors to trade foreign stocks without dealing directly with foreign exchanges, while common stock represents ownership and voting rights in a company. Depositary receipts may have different dividend policies and currency risks compared to common stock.
What are the different ways of financing foreign trade?
The different ways of financing the foreign trade include cash in advance, the commercial letter of credit and working capital financing.
Can you trade foreign currency at any Wells Fargo financial bank?
Yes you can. Wells Fargo is an international Bank and you will be able to do that there. There are also other places where you can trade foreign currency.
Where can one learn to trade in the foreign currency market?
One can learn to trade in the foreign currency market can be found on the FXCM website. This will tell you all you need to know including what to beware of in the market.
What are the differences between domestic middle men and foreign middle men?
The only difference is their place of origin, otherwise they can trade in anything anywhere.
What is the Comparison and contrast between trans Sahara trade and transatlantic trade?
what are the similarities and differences between trans saharan trade and transatlantic trade
Foreign trade definition?
Foreign trade is defined as trades made between different countries. The trades can be goods, research, or services.
Similarities between home trade and foreign trade?
main aim of both the trade is maximizing there profit on sales
Meaning of foreign trade?
The meaning of foreign trade is trade across the borders which is referred to as international trade. This is the exchange of goods and services between different countries.
Who would control the trade between us and foreign?
secretary of state
What is the difference between foreign trade and foreign investment?
when MNCs invest their money to buy assets such as land and machines, it is known as foreign investment. It is made with the hope that the value of these assets will increase in future whereas foreign trade is the trade which takes place between two or more countries through MNCs. Foriegn Trade includes buying and selling of good under an aggreement while Foriegn Investment only deals with investments in shares of properties on a foriegn land
What indicates the exchange of goods and services between countries?
International trade is the exchange of goods and services between countries. Other terms that indicate this are foreign trade and world trade.
Who would control trade between the US and foreign nations?
secretary of state
What Words mean a foreign place trading by agreement?
The term "foreign place trading by agreement" can refer to "trade agreements" or "bilateral trade." These are arrangements between countries that facilitate trade by establishing terms for the exchange of goods and services, often aimed at reducing tariffs and barriers. Additionally, the term "foreign trade" itself encompasses international commerce conducted between nations.
What is the nature of foreign trade?
Chinese against foreign trade
Which could limit trade between America and a foreign country?
increased government regulations
