Internal Trade:

1. Trade takes place between different individuals and firms within the same nation. 

2. Labour and capital move freely from one region to another. 

3. There will be free flow of goods and services since there are no restrictions. 

4. There is only one common currency. 

5. The physical and geographical conditions of a country are more or less similar. 

6. Trade and financial regulations are more or less the same.

International Trade:

1. Trade takes place between different individuals and firms in different countries. 

2. Labour and capital do not move easily from one nation to another. 

3. Goods and services do not easily move from one country to another since there are a number of restrictions like tariff and quota. 

4. There are different currencies. 

5. There are differences in physical and geographical conditions of the two countries. 

6. Trade and financial regulations such as interest rate, trade laws differ between countries.

7. Differences are pronounced in political affiliations, habits and customs of the people and government policies