Q.State any three differences between domestic business and international business.

This question expects three distinct, correctly stated points of difference, each addressing a genuinely separate basis of comparison rather than restating the same idea twice.

Briefly: domestic business deals in one currency and one country's laws with lower overall risk, while international business deals in multiple currencies, multiple countries' laws, and carries higher political, currency, and transit risk.

Domestic business and international business differ on several counts. First, on CURRENCY: a domestic business deals in a single home currency, while an international business deals in two or more currencies and is exposed to exchange-rate risk between the time a deal is agreed and payment is settled. Second, on REGULATORY ENVIRONMENT: a domestic business complies with the laws of only one country, while an international business must comply with the laws, customs procedures, and standards of every country it operates in. Third, on DEGREE OF RISK: a domestic business faces mainly ordinary commercial risk, while an international business additionally faces political risk (policy or government changes abroad), currency risk, and transit risk (loss or damage over longer distances and customs checks). A fourth valid point is CULTURAL AND LANGUAGE DIVERSITY: a domestic market is relatively uniform, while an international business must adapt to differing customs, languages, and consumer preferences across markets. A fifth valid point is SCALE OF OPERATIONS: a domestic business is limited to the size of the home market, while an international business can potentially serve a much larger combined market, at the cost of needing much greater investment and organisational capacity.

A common mistake is naming only the difference ('currency is different') without briefly explaining HOW it differs — for full marks, each point should state the domestic side and the international side of the comparison, not just the heading of the point.