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

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