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.

A Joint venture is a business agreement wherein parties agree to develop a new entity and assets subscribing to equity shares and thereby exercising control over enterprise and consequently sharing revenues, expenses and the assets.

It connotes a type of international business where a firm enters into a contract with one or a few local manufacturers in foreign countries in order to get certain components of goods produced according to its specifications. It is also called as outsourcing or contract manufacturing.

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.

(i) 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.
(ii) This exchange of goods and services among the countries enhances higher standard of living of people.