| Internal Home trade | External/International Trade |
| Difference in currency is not obtainable. | Difference in currencies is obtainable, it involves the exchange of foreign currencies. |
| Transportation cost is less | Transportation cost is extremely too high |
| Little or no cultural difference exist | Abound cultural differences exist. |
| Balance of payments problem is not seen. | Balance of payments is seen at its apex if country’s imports exceeds her exports. |
| Trade here involves people of the same country | Trade here involves people across different national boundaries. |