Domestic business refers to commercial transactions that take place within a country's geographical borders. International business refers to commercial transactions that take place outside of a country's geographical borders.
A domestic flight travels within the same country, but an international flight travels to a foreign country. A domestic flight in the United States is one that travels from one state to another or even inside the same state.
A domestic business is one that is organised in both the United States and a foreign jurisdiction (another state or nation). If you register your firm in the United States under Oregon's business rules, for example, you are doing it as a domestic LLC or corporation.
Domestic corporations operate within their own country or state. Foreign firms are companies that are based in a country other than their home country. Corporations may also be considered foreign outside of the state in which they were formed.
An organisation that outsources services, such as customer support, to locations where labour costs are lower might be called an international firm, as can a company that manufactures components or goods overseas but sells them domestically.
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