Europe's business environment is vibrant and evolving, with a wide range of advantages and disadvantages. Foreign exporters and potential investors still struggle to get into the European Internal Market and dealing with the disparity in laws, rules, and standards among 27 Member States. This thesis examines the EU internal market, the European business environment, and their relative advantages and disadvantages in terms of attracting foreign direct investment. Over the course of its lengthy existence, the European Union has made an effort to become more transparent, both internally and internationally. Intense rivalry characterizes the modern global economy, and membership in the European Union boosts potential for foreign direct investments and offers numerous advantages to the Member States. The principal investment partners have shifted, and the value of foreign direct investments in the European Union has doubled since 2012. Even with its expanding financial and industrial sectors, the European Union remains a desirable place to invest. As a result, the European Union seeks to promote internationalization within the European Union through its policies, strategies, crucial instruments, and measures. As a result, there is a growing number of foreign-controlled businesses and an open, highly prospective Internal Market.