| Internal | External |
| 1. Differences in currencies is not obtainable. E.g. A trader from Elele can go to Onitsha and buy goods with his naira. | Differences in currencies – are obtainable, it involves the use of different currencies E.g. A businessman going to USA to buy goods must change his naira to Dollars with which he can import goods. |
| 2. Transportation cost is less in internal trade | Transportation cost is extremely too high. |
| 3. Little or no cultural differences exist. | Cultural differences abound. |
| 4. Absolute free movement of goods exist in domestic trade. | Abound trade restrictions exist. E.g. custom duties, quotas and embargoes. |
| 5, Balance of payments problem is not obtainable | Balance of payments problem is obtainable if country’s imports exceed her exports. |
| 6. Trade or exchanges involves people of the same country. | Trade or exchanges involves people across different national boundaries |