Unit 43- Tapping into New and International Market

Unit 43- Tapping into New and
International Market

Contents
INTRODUCTION.......................................................................................................................................................................................4
TASK 1........................................................................................................................................................................................................4
Analysing global business organization surroundings small and entrepreneurial businesses operate....................................................4
Analysing the implication on threats and opportunities that face SMEs in an increasingly competitive global environment...............5
How the SMEs will take advantage of opportunities available in international marketplace.................................................................6
Analysing opportunities and threats that faced by SMEs in an progressively competitive global environment....................................7
Analysing the benefits of international trading agreements and blocs....................................................................................................8
Analysing various type of tariff and non-tariff that present in the international ..................................................................................11
....................................................................................................................................................................................................................13
Analysing benefits and limitation of importing and exporting and how to secure a deal.........................................................................13
Companies choose importing and exporting in order to trade goods in between other countries in effective manner. In context of
Airdri Ltd, benefits and limitation of importing and exporting goods are discuss below: ...................................................................13
Importing - Importing is process in which any goods and services are produced or manufacture in another country and it purchase
by the buyer of home country. In respect of Airdri Ltd, its advantages are discussing below:............................................................13
Advantages-...........................................................................................................................................................................................13
Introducing new products to the market- Importing allows companies in order to introduce new products in their home country
market in effective manner (Lo and Campos, 2018). In regards of Airdri Ltd, it will help them to increase their sales by providing
new products to their potential customers. It will need to develop marketing strategy for promoting new products in market. .........13
Reducing costs- Importing help companies in order to reduce their costs and provide their products in low price to the customer. In
case of Airdri Ltd, importing reduce their manufacturing costs which helps them in order to gain profit from it...............................13
...............................................................................................................................................................................................................13

Disadvantages-.......................................................................................................................................................................................14
Foreign exchange risk- Importing can cause problems for the company if currency exchange rate change in country. In accordance
with Airdri Ltd, importing may cause loss for them due currency fluctuations in the country.............................................................14
Legal risk- Importing can be risky if any 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....................................14
Analysing various method in which SMEs can tap into international markets.....................................................................................15
CONCLUSION..........................................................................................................................................................................................17
REFERENCES..........................................................................................................................................................................................18

INTRODUCTION
Tapping into new and international market refers to a method which helps companies in order to gain advantage of increased
sales and customers by selling their product and services into another country market in effective manner (Ashraf, 2018). It help
companies in order to increased their business growth and become more competitive for their competitors in effective manner. It will
also help them in order to lower their operational cost and save their money while entering into new country market. For this business
report, selected company is Airdri Ltd which is a small enterprise of UK and type of converted paper product manufacturing industry.
It incorporated in 1974 in Witney, United kingdom and provide its services with the help of its 32 employees. It want to expand their
business in new country market that is Switzerland
The business report covers threats and opportunities for firms open to an increasingly globalised surroundings and benefits of
trading blocs for firms. It further describe importing and exporting practicalities and process involved and different type of ways
SMEs can tap into international market.
TASK 1
Analysing global business organization surroundings small and entrepreneurial businesses operate
Global business organization environment refers to a environment in which company operate their business in own country
and in other country also in order to gain various advantages from it. In context of Airdri Ltd, business advisor on international trade
advise them to expand their business in Switzerland, which is a small country of Central Europe (Boyles, 2018). In Switzerland
unemployment level is low, highest GDP and skilled workforce which will be profitable for them in order to enter in new market
effectively. In this country corporate tax rate is low, high technological industries and highly developed financial service sector which
helps them in order to sell their products and earn maximum profit in effective manner.
Various factors are present in international market which provide problems or benefits for the company in order to enter in a new
market in relevant manner. In respect of Airdri Ltd,factors of international market that may provide problems or benefits for them in