Export Business: Analyzing Trade Blocs, Barriers, and SME Strategies

This report provides a comprehensive overview of starting an export business, emphasizing the importance of understanding trading blocs and agreements for promoting international trade. It identifies tariff and non-tariff barriers that companies face in the global marketplace, such as export and import duties, and the impact of strained international relations. The report also discusses the implications of trade support by NAFTA, highlighting its role in promoting free trade practices. Furthermore, it contrasts merchandise and service imports and exports, explores various methods for SMEs to tap into international markets like licensing, mergers, new branches, and acquisitions, and compares the pros and cons of each approach. The report concludes by underscoring the significance of strategic management in developing organizational functions for long-term success.

How to Start an Exporting Business?
Explain the various tariff and non-tariff barriers that exist in the international trading
environment
In the different aspects, trade barriers are considered as major obstacles and hurdles for the
company. In the recent times, there are major target barriers which create hurdles for many
companies in the international marketplace (Hausfather, and Peters, 2020). The major tariff and
non-tariff barriers are mentioned below: •
Octroi- The octroi should be considered as major type of trade duty which is essential for a business
to be paid while trading. Octroi is paid by international companies to develop trading in
international marketplace. It is essential for a company to pay octroi in order to conduct a legal
business.
Export duty- The export duty is considered as amount paid in order to complete exporting of good
from one country to another (Mont, Plepys, and Nußholz, 2017). It is essential to develop export
duty to take action in field of earning revenue from worldwide trade.
Import duty- It is compulsory for a business to develop a major import duty in order to lead the
marketplace. The import duty is charged by the government of a country whenever it receives goods
from another country.
Bad relations between countries- In the global marketplace, there is a need of good relationship
between different countries. So, the worst relationship between different countries lead to disturb
trade practices in a major sense. The presence of bad relationship between different countries also
increases the trade duties and tariff which creates major obstacles between country trade. In order to
develop fair trade practices, it is essential for the countries to improvise major relationship between
them.
Implications of trade support by NAFTA
The NAFTA is a major body which controls trade practices between different countries in
order to promote trade. Promote trade practices in a free manner is a major function of NAFTA.
This is also a major trading development practice which includes focus on different goals and
objectives that are essential for life long development. The NAFTA also ensures any country is not
imposing any type of export and import duty.
Trading blocs and agreement are two major pillars for promoting trade between two or more
countries. The trading blocs should be analysed by different countries in order to promote trade
practices related to cross border trading (Freeman, Parmar, and Martin, 2020). It is also a key role
of management in order to develop a strategy according to trading agreements in order to gain
marketplace success. The major advantages of international trading blocs and agreements are
mentioned below:
 criminal or civil offence of foreign country does not accept by the home country. In
account of Airdri Ltd, importing create various problem if legal laws are not acceptable
by UK government.
 Promotes import and export between countries- The import and export is promoted
between business entities all across the globe. It is also essential for the business to
develop a major strategy to develop export and import in order to promote trade
practices.
 Increase in revenue and profitability- With the help of international trading blocs and
agreements, a company can increase its profitability in the marketplace. This also gives
a significant rise to production and service activities in a business (Habib, and Hasan,
2020). Governments of different countries should focus on increasing the profit of major
business entities in order to develop major trade agreements with relaxation.
 Focused growth of a company- A company should develop a major focused approach
in the global marketplace to take full advantage of trading agreements. The focused
growth helps a company to achieve majority of goals and objectives with utmost ethical
duty.
Advantages for United Kingdom:
 They will boost the trade of country by focusing on major advantages of trade policy of
UK with other countries. It will increase the employment opportunities in UK, this will
automatically develop an approach which is beneficial for increasing employment rate.
 The promotion of trade practices will increase the gross domestic product of country
with a major increase national income.
 United Kingdom will lead the world with major development in trade policies and
promoting trading across the border.

Determine the advantages and disadvantages of importing and exporting and how to secure a deal
It is essential for a company to develop and focus on advantages and disadvantages related to
import and export based functions and formalities. The major advantages of importing and
exporting are mentioned below:
Fulfilment of market demand- The export and import of goods in trading helps in fulfilment of
demand of different customers (Radojevic, and Davidson, 2018). This leads to create satisfaction
of customers in the society for a long period of time. Market demand is increased in a country due
to lack of good, so with the help of export and import practices a country can easily satisfy its
citizens.
Increases GDP- The gross domestic product of a company is increased with the help of
development of practices related to export and import. To increase the GDP government of a
country should promote export and import based operations. Along with Gross domestic product,
the national income of a country also rises with increase in trade practices.
The major disadvantage of importing and exporting are mentioned below:
Illegal trade practices- There are major illegal trade practices which happen in the world create a
major concern for government of a country (Ransbotham, and Kiron, 2017). The government of
different countries, comes up with major policies that are effective in prohibition of illegal trade.
Risk- In the global marketplace, risk associated with operations creates a major barrier for
different companies. Shipping issues like fire and theft are two major issues which arise during
the transportation of product. Also there are major factors which are considered by a business to
eliminate risk associated with the international operations.
Explain the differences between merchandise and service imports and exports
The merchandise is a type of regular business activity in the domestic marketplace which enables
a business entity to satisfy local needs. These type of enterprises sells self-developed or marketing
products in the local area or marketplace. On the other hand, service import and exports are the
major functions of an international business which involves large scale operations. In the
merchandise based operations, there is a trade of goods and services on small scale operations
basis (Staniewski, and Awruk, 2019). All major companies in the international and national
marketplace, focus on development of trade operations with the help of systematic approach. The
merchandise based companies also require major help of government in order to seek fund
support. Also the service related to imports and exports is developed with the support of a focused
approach.
Evaluate the various methods in which SMEs can tap into international markets.
It is very much crucial for a business entity to focus on various methods that are helpful in
development of operations in the global marketplace. The SME should develop a focused
approach in the international markets for choosing following methods-
Licensing- The licensing is considered as major method which a SME can be adopted by a
business entity in order to foreign marketplace. Licensing includes legal document formulation
with the help and support of government to conduct a legal and advance manner.
Merger- Merging is a major way to enter abroad marketplace in order to conduct a business in an
ethical manner. There are various companies in the marketplace, merge with each other as a
collaboration to expand at the marketplace. The merging experience provides a good growth to a
company and also expands its human resource and marketing challenges.
New branch- In the global marketplace, new branch opening is considered by a SME to formulate
major practices of business development (Visser, 2017). The new branch opening includes a huge
investment based opportunities that create a major turning point for major companies. It is
essential for a business entity to develop a major strategy with the help of top level management to
compete at the marketplace.
Acquisition- The acquisition technique is used by a business in order to acquire a new company.
It is also key responsibility of management after acquisition to perform major operation of the
company in a precise manner.

Compare and contrast the various ways SMEs can tap into international markets, assessing
the pros and cons of each method
Major SMEs, when they approach international market face various difficulties as well as
opportunities. The SMEs can develop a major strategy and approach which is beneficial in
development of planning framework. Major pros and cons of each method are given below:
Licensing- The major advantage of licensing is, it provides legal document to a company to
conduct business in the international marketplace. One of the major disadvantages of licensing
includes unfair development of practices which can be for a fixed time period. Licensing is
practiced as a major source of providing legal access to a business in the country.
Merger- Change in culture of the organisation occurs when a domestic company merge with
another company. The change management should be done in a systematic manner for facing
consequences after merging. All major companies in the international and national marketplace,
focus on development of culture in order to improve the internal environment.
Acquisition- The main advantage of acquisition is focusing on acquiring an already established
business entity. This eliminates risk associated with the operations in global marketplace to
acquire major funding based techniques. Also the major disadvantage of acquisition is
requirement of professionalism associated with the operations.
New Branch- One of the major advantages of opening a new branch is, it helps a company to
start fresh operations abroad. The main disadvantages of opening a new branch is it includes
threat from different competitors which are present at the marketplace.
Business process outsourcing- The business process outsourcing is a major method in which a
company transfers business work to other business. In other words, it is the act by which business
process outsourcing takes load from other company and does the work accordingly.
CONCLUSION
From the above stated report it can be concluded that, business report is a brief document which is
prepared by a company to know status of management. This project concludes the importance of
strategy in development of major functions in the organisation for long term success. This project
also concludes the role played by strategic management in development of digital strategy.
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