|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