FDI means investment made by a company or individual in one country in the business interest in another country in the form of either establishing new business operations or acquiring business assets in the other country.

Franchising is a contractual agreement which involves grant of rights by one party to another for use of technology, trade mark and patterns in return of the agreed payment for a certain period of time.

Uneven Availability of Factors of Production:
The availability of various factors of production namely, land, labour, capital and technology for producing goods and services differ among different countries.
Cost Benefit :
Production cost varies significantly among the countries due to difference in socio economic, geographical, demographical, technical and political environments prevailing there in.

When the firm of a country imports goods for the purpose of exporting the same goods to the firms of some other country with or without making any change in the goods meant for export it is known as entrepot trade.

When a business firm of a country purchases goods from the firm of another country it is called as Import Trade.

International business denotes all those business activities which take place beyond the geographical limits of the country.

According to John D. Daniels and Lee H. Rade baugh, "International business is all business  transactions-private and governmental- that involve two or more countries".

The following are the special feature of Entrepot Trade.
(i) Import duty is not levied on such goods
(ii) These goods are reprocessed and repacked for re-export.
(iii) Such goods are kept in the bounded warehouse till they are re-exported.

Limitations:
1. Economic Dependence
2. Inhibition of Growth of Home Industries
3. Import of Harmful Goods
4. Shortage of Essential Goods in Home Country
5. Misuse of Natural Resources
6. Political Exploitation
7. Rivalry among the Nations
8. Invasion of Culture

1. to raise national income and standard of living
2. to enable even distribution of natural resource
3. to enable even distribution of agricultural products
4. to enjoy the fruits of development of science and technology
5. to share the benefits of low cost of production

S.No Basis Domestic Business International Business 1 Meaning Domestic business refers to business transactions involved within the geographical boundaries of a country International business refers to the business transactions involved beyond the boundaries of a country  2 Participants in business People/organizations within the country participate in business activities People/organizations outside the country participate in business activities 3 Mobility of factor of production The factors of production i.e. labour capital, technology, material, etc. move freely within the boundaries of the country The factors of production i.e. labour, capital technology, material, etc. move across the boundaries of the country. 4 Nature of consumers Consumers are relatively homogenous in nature in terms of culture, behaviour, taste, preferences, legal system, customs and practices, etc Consumers are relatively heterogeneous in nature in terms of culture, behaviour, taste, preferences, legal system, customs and practices, etc. prevailing across the countries 5 Business systems Domestic business is governed by the rules, laws, policies, taxation system,etc. of a single country. International business is governed by rules laws and policies, tariffs and quotas, etc. of multiple countries 6 Currency used Domestic business transactions are settled by local currency of a country International business transactions are settled by foreign currencies. 7 Mode of transport The goods involved in domestic business are mainly transported by roadways and railways. The goods involved in international business is mainly transported by water and airways 8 Risk exposure The risks involved in domestic business are relatively less The risk involved in international business are more due to distance, difference in socioeconomic and political conditions, change in foreign exchange values, etc. 9 Scope of market The scope of market is limited to national boundaries of a country. The scope of international business is very wide and extends beyond the frontiers of a country 10 Payment of Excise duty Payment of excise duty involves simple procedures and it is relatively low in domestic trade. The process of payment of excise is complicated in international business and the rate of excise duty is relatively high

(i) Geographical specialisation :
(1) Countries across the world differ significantly in terms of natural resources, capital equipment, manpower, technology and land so on.
(2) Some countries are rich in mineral resources, hydro-electric power, metallic resources and so on while some other countries may possess advanced technique of manufacturing, efficient working population, capital equipment and so on.
(3) International business is required to exchange the surplus resources resulting from geographical specialisation for deficit resources in other countries.
(ii) Optimum use of natural resources:
(1) International business operates on as simple principle what your country can produce more efficiently and trade the surplus production with other countries, to procure what they can produce more efficiently.
(2) This enables the countries to optimally utilise the scarce resources available with them
(iii) Economic development :
(1) International business helps the developing countries greatly in achieving rapid economic development by importing machinery, equipment, technology, talent and so on.
(2) For Example: China, India, Brazil and South Korea which were once slow in their economic development are achieving faster economic development due to international business.
(3) Even the developed countries like Japan, USA, UK, etc have achieved remarkable economic progress through the import of raw material and exports of manufactured goods.
(iv) Generation of employment:
(1) International business generates employment opportunities by assisting the expansion and growth of agricultural and industrial activities.
(2) It provides direct employment to those people who are hired by export and import firms and generates indirect employment to number of intermediary firms like, clearing and forwarding agent, indent houses, transport organizations, outsourcing agencies, etc.
(v) Higher standard of living:
(1) On account of international business, the citizens of the country can buy more varieties of goods and services which cannot be produced cost effectively within the home country.
(2) This exchange of goods and services among the countries enhances the  standard of living of people.
(vi) Price equalisation :
(1) International business helps to stabilise the prices of various commodities which are fluctuating on a daily basis in the world market.
(2) Whenever the price of a commodity rises sharply in a particular country, the same commodity is imported from some other foreign countries to prevent the sharp rise in prices in the home country.
(vii) Prospects for higher profit:
(1) International business helps the firms which produce goods in excess to sell them at relatively higher price to various countries in the international market.
(2) This enables them to earn higher profit.
(viii) Capacity utilisation:
(1) International business enables the firms across the country to sell their goods and services on a larger scale in the international market.
(2) As a result their machinery and equipment are used to their full capacity.
(3) In short, very prospect of selling goods in international market besides selling goods in home market keep the machinery, tools, equipment and factory fully engaged all throughout the year.
(ix) International peace:
(1) International business makes countries across the world become inter-dependent while they are independent in their functioning.
(2) This facilitates the exchange of culture, ideas, mutual understanding.
(3) It develops and strengthens cultural and social relations among the people of different countries.
(4) All these collectively contribute to maintain international peace.