DIFFERENCE BETWEEN DOMESTIC AND INTERNATIONAL TRADE

Purchases and sales where by domestic are not affected by the location of the buyer and seller to the degree that is true with international transactions. When the buyer and seller are located in the same nation, only trade regulations related to that one country will apple product. Example: Any person can purchase the product without being affected within his or her country like paying tariffs and also the product are available all the time so when he or she need it, it easily to purchase without any affection.

 By contrast, an international transaction would have to be conducted in a manner that is in compliance with the trade regulations that are in place for both countries involved. This requires that both the buyer and the seller be aware of those regulations and make sure the goods, the mode of shipping, and the documentation prepared is in line with those regulations. Failure to do so can lead to delays in delivery, and possibly lead to refusal by the receiving port to allow the goods to be unloaded. Example: If a person from outside of the country bring his product to another should suppose to follow the regulation of the country as well as to pay tariffs. Like a person from Uganda is suppose to follow the regulation of Tanzania country before he or she bring his or her product.

Shipping process whereby international and domestic trade is that the type of fees and charges associated with the shipping process will also be different. Various tariffs and other fees are typically applied to shipments between countries, regardless of whether the mode of shipping is by travel over land, by sea, or by air. In contrast, the process of transporting a shipment between two points in the same country is much simpler in terms of the type of taxes, fees, and charges that are levied as part of the shipping process. Identifying and properly calculating all relevant taxes and charges is one of the more important aspects of understanding how domestic and international trade arrangements will differ.

Rate of exchange between the two currencies involved may require some planning to arrange, while the matter of currency is not a problem with domestic transactions. In like manner, language and cultural differences may also be of concern with an international transaction, but are much less likely to be a factor in a domestic one. Example Tanzania people are free to use their currency in term of buying or selling product because the product are founded within the country.

While the processes used for international trading may be somewhat more complex than conducting a domestic transaction, professional shippers and agents can help buyers and sellers understand what needs to be done in order to successfully execute the transaction and arrange for shipment and delivery, while avoiding some of the pitfalls that could otherwise occur. Example: When the people from Uganda bring his or her product there must be the changing of currency because Tanzania currency is different with Uganda currency.

Movement of goods where by domestic trade easier to move goods without many restrictions since movement of good are done within the country where need tariffs or taxes. Example: People who are conduct trade within the country are free to move from place to another for marketing system like person from Mbeya can travel to Morogoro for business matter without any restriction. While in international trade movement of good are more restricted whereby it does may need to pay tariffs etc and also international trade its has more restriction due to complicated custom procedures and trade barriers like tariff. Example: The person from Russia when he or she bring product to Tanzania there are some restriction like tariffs, barriers etc.

BACHUBIRA ZAITUNI