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By using xref(External Reference) we can attach an entire drawing(as a reference) in to the current file.
Any changes in the 'Reference File' are reflected in the current file.
Advantages:
Can Insert Layers, Blocks, Dimensional Styles and other properties from Ref drawing to Current File
Easy Coordinate works by different users
A Drawing can be attached as Reference to multiple files
The file size of Current file doesn't increase further
Multiple Drawings can be Attached as a Reference to a single file
At the end of the project, We can merge all the Reference files in to a single file
Disadvantage:
We cannot Explode a reference file without BINDING it to the Current Project