The following are the special features 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 Bonded warehouse till they are re-exported.

It can be established under three different ways namely,
(i) Foreign Investors buying an interest in local company
(ii) Local firm acquiring an interest in the existing foreign firm
(iii) Both the foreign and local firms jointly forming a new enterprise.

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".

1. Salt Route - India to Egypt
2. Silk Route - China to India
3. Spice Route - India to Europe.

(i) International business makes countries across the world become interdependent while they are independent in their functioning.
(ii) This facilitates the exchange of culture ideas and mutual understanding. It develops and strengthening cultural and social relations among the people of different countries. All these collectively contribute to maintain internal peace.

(i) Certain countries or some geographical areas of a certain country specialise in the production of goods and services due to some natural advantages like abundant availability of skilled labour, favourable climatic conditions, availability of natural resources, technical known-how, etc.
(ii) For Example: In India, Coimbatore specialises in cotton textiles and producing textiles and machinery. Tripur specialises in manufacturing hosiery products. This specialisation paves the way for large scale production of specialised items

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

Necessity for Entrepot Trade:
1. A country cannot import goods directly from the others because of the following reasons.
2. The country may not have any accessible trade routes connecting the importing country.
3. The goods imported may require further processing or finishing before exporting, and these facilities may be lacking in the exporting or importing country.
4. There may not have any trade agreement between both the country.
5. Importer and exporter may not share good economic relation with each other.

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