Global vs. Domestic Business

Global vs. Domestic Business

I am interested in conducting further research on global versus domestic businesses. Narrowing down to the cultures, domestically compared to the cultures in global businesses. I am attracted to find out how different or similar these two types of businesses really are. Nowadays, the internet is the best thing since electricity. This generation, globally or domestically, relies on reviews and trends found on the internet. There is no difference when it comes to the internet with global or domestic business because the culture online depends on the individual. Domestically, rules are not as strict, therefore culture is a little freer. United States, being a free country and compared to another country that has stricter rules, how does business go about with restrictions and lack of culture? Global versus domestic has plenty of differences and some similarities and it all comes down to culture. However, since America is a free world, there are others willing to travel to the U.S. but will bring their cultures with them. Sometimes it cannot benefit the second generation if they were born and raised in America.

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Global business has diverse characteristics to reflect when starting a business compared to a domestic business. Three things Satterlee elucidates in the text, International Business with Biblical Worldview, that global and domestic have that are dissimilar: scope, culture and market factor, management skills (Satterlee, B., 2018). Primarily culture has an immense impression, globally and domestically. Culture is imperative to exploration when starting a business in any country. Culture is vital overall. Merriam-Webster’s defines culture as “the set of shared attitudes, values, goals, and practices that characterizes an institution or organization” (Merriam-Webster, 2019).

International business management must be attentive of the culture that is among them, making sure it does not have animosity between executives and employees from other countries. It is crucial to remain professional when dealing with another culture as their norms may not be the same as another. Along with being mindful of norms, the culture for the both domestic and global business needs to remain impartial or it can progress into destructive affiliations.

In the article called, Is country affinity applicable for domestic brands? The role of nation sentiment on consumers’ self-brand connection with domestic vs foreign brands categorizes consumers’ behavior on purchasing anything, globally or domestically, and how it all comes down to culture. Along with culture, global business depends on personality traits, stereotypes, and consumers’ ethnocentrism to contribute to their sales (Fazli-Salehi et al, 2020). In today’s world, this means social media, influencers, and celebrities are the new marketing source. Trademarks are no longer merely marketing their merchandise in magazines or commercials. Globally and domestically, if they have the budget, they will be able to get a live tester, also known as an influencer or celebrity, and review it for them on their social media account, where they have millions of followers. Then the influencer convinces their followers to purchase the product.

Diving further into ethnocentrism, this article examined the comparison of a global business versus a domestic business and how ethnocentrism affects consumers and businesses all over the world. Consumers are given a certain number of products exposed to them whether that be on the internet, people walking on the streets, school, and pretty much anywhere an individual can be influenced. Conversely, there are preconceptions on people’s own culture whether be stereotypes originate on the internet or unfounded information can delay growth for global businesses. Domestically, ethnocentrism is not a hindering fact for consumers. Global businesses can be affected if people believe that country is not authentic.

“Consumer ethnocentrism, which is rooted in social identity theory, assumes that consumers’ strong identification with their home country (in-group bias) leads them to protect their country’s balance of trade and employment by preferring domestic to foreign products” (Balabanis et al, 2019). When it comes down to global business versus domestic business, consumers can maintain their allegiance to a specific brand. Which means, favoritism can transpire within the business specifically if one is already popular and on top.

Does it really matter if the product was made globally or domestically? For some consumers it makes an enormous difference. In today’s world, people are more attracted to local products and keeping loyalty with those local businesses (Bernard et al, 2020). It’s the same with Black Friday (big name stores) and Small Business Saturdays having their own holiday. Business is attracting consumers through sales, decreasing their rates only to increase their revenues. Global business is not able to do this as it can be forbidden in some cultures.

Global and domestic businesses have far more differences than similarities. It can be easily misconstrued if a domestic manager tries to manage a global business without proper background. It is imperative every manager make inquiries about the business before taking on the responsibilities.


Balabanis, G., Stathopoulou, A., & Qiao, J. (2019). Favoritism Toward Foreign and Domestic Brands: A Comparison of Different Theoretical Explanations. Journal of International Marketing, 27(2), 38–55.×19837945

Bernard, Y., Collange, V., Ingarao, A., & Zarrouk-Karoui, S. (2020). Products labeled as “made in domestic country”: the brand matters. European Journal of Marketing, 54(12), 2965–2987.

Fazli-Salehi, R., Torres, I. M., Madadi, R., & Zúñiga, M. Á. (2020). Is country affinity applicable for domestic brands? The role of nation sentiment on consumers’ self-brand connection with domestic vs foreign brands. Asia Pacific Journal of Marketing and Logistics, ahead-of-print(ahead-of-print).

Merriam-Webster. (2019). Definition of CULTURE.

Satterlee, B. (2018). International Business with Biblical Worldview (pp. 8–9) [Review of International
Business with Biblical Worldview

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