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With the new Steam Families system that is currently in BETA you will be able to only share with users that are in the same Steam store region as you. So not with someone in another country. On the plus side you dont need to authorize anything in the new system, just send out an invite via the friend list.
As for the second question, in both systems you only have one license for a game.
If the person you share the game with is playing the game its in use and not available to you.
So no, you cant play multiplayer games via Family Share with more then one person.
Every user needs their own copy if you want to play together.
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