The key difference between international finance and domestic finance lies in the scope and complexity of the financial transactions involved. Here are some key differences:

1. Scope: Domestic finance deals with financial transactions within a single country, while international finance involves transactions between different countries. This includes cross-border investments, foreign exchange transactions, international trade financing, and multinational corporation operations.

2. Currency: Domestic finance typically deals with a single currency, whereas international finance involves multiple currencies. Exchange rate fluctuations and currency risk management become crucial factors in international finance.

3. Legal and Regulatory Environment: Domestic finance operates within the legal and regulatory framework of a single country, while international finance must navigate the legal and regulatory systems of multiple countries. This includes compliance with international trade laws, tax regulations, and foreign investment regulations.

4. Risk and Uncertainty: International finance involves higher levels of risk and uncertainty compared to domestic finance. Factors such as political instability, economic volatility, and cultural differences can significantly impact international financial transactions.

5. Information and Analysis: International finance requires a broader understanding of global economic trends, geopolitical factors, and international markets. Analyzing and interpreting information from multiple countries and regions becomes essential for making informed financial decisions.

6. Complexity: International finance is more complex due to the involvement of multiple currencies, legal systems, and cultural differences. It requires a deeper understanding of international financial markets, international accounting standards, and global financial institutions.

7. Financial Instruments: International finance involves a wider range of financial instruments and products compared to domestic finance. These include foreign exchange derivatives, international bonds, cross-border loans, and international equity investments.

8. Economic Factors: International finance is influenced by global economic factors such as interest rates, inflation rates, and economic growth rates. Domestic finance, on the other hand, is more focused on the specific economic conditions of a single country.

Overall, international finance requires a broader perspective, specialized knowledge, and a deeper understanding of global financial markets and international business environments compared to domestic finance.