Tapping into New and International Markets

This report explores how small and entrepreneurial businesses can tap into new international markets and overcome barriers for global growth. It discusses the global business environment, trading blocs and agreements, and the advantages they offer. The chosen country is the United Kingdom.

Tapping into New and
International Markets

Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
Introduction to the chosen country and region and explain the global environment in which
small and entrepreneurial businesses operate..............................................................................3
An analysis of the global business environment and the influence of key global drivers
specifically in relation to the chosen country..............................................................................4
Discuss the rationale for SMEs to expand their business internationally....................................4
Critically evaluate how SMEs can take advantage of the international opportunities and
overcome barriers for global growth............................................................................................5
Explain trading blocs and agreements and examine the advantages of specific trading
agreements that would have a direct significance for your region and country..........................5
Explain the various tariff and non-tariff barriers that exist in the international trading
environment.................................................................................................................................6
Evaluate how international trading blocs and agreements stimulate and generate global growth
for SMEs......................................................................................................................................6
PART 2............................................................................................................................................6
Covered in brochure.....................................................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Trading overseas refers to the activity by which goods as well as services are transported
from one country to the other which are miles apart and separated from one's territory by the sea.
It helps the company to exploit the opportunity by effectively tapping into new international
market and cover the area successfully in order to enhance growth and development opportunity.
Trading usually involve the import as well as export practices in order to accommodate the needs
of potential market effectively (Cantwell, 2013). The prime aim of this report is to significantly
understand the global or external environment as business operate in dynamic environment so it
explore the external opportunity and overcoming the chances of threats. For better understanding
and to attain the particular aim Barclays organisation has been selected whose headquarter is in
United Kingdom. It basically offer the financial services in terms of corporate banking, personal
banking facility, wealth management as well as investment. To prepare the webpages content for
company United Kingdom region has been selected under which the global environment is
analysed where the small and medium business incorporate its functioning. This report cover
topics like analysis of opportunity as well threat in global business environment of UK. Along
with that it include benefits associated with the agreement of international trading including
various tariff as well as non non tariff barriers for Barclays organisation.
PART 1
Introduction to the chosen country and region and explain the global environment in which small
and entrepreneurial businesses operate
Barclays organization has selected the United Kingdom region where it identity the
opportunity as well as threat in order to carry out the functioning of small businesses. UK is the
part of Europe region that is the civilized country and is sixth largest economy that promote the
small and medium business in order to maintain the enhanced living standard of people. Even
local authorities provide subsidies to the small business because they help to maintain the
economic growth of country by making enormous contribution to raise GDP. So due to the stable
political conditions, favorable laws as well as immense government support has laid sharp
growth within service sector (Filippov and Duysters, 2011). Additionally, it has roughly
contributed 80% in the gross domestic product where most of the organization are small and
based on innovative start up. In case of the chances of any turbulence these small and medium

industries act as a root which participate in the circulation of fund and help to cater the needs of
audience by offering them various options. For instance, during the time of Brexit the country
gained immerse support from small business in comparison with large companies and help to get
back to the normal situation. Therefore, this reflect the significance of small business that leads
to the economic growth and enrich the whole economy by maximizing the involvement of people
and generating immense employment opportunity.
An analysis of the global business environment and the influence of key global drivers
specifically in relation to the chosen country.
Global business environment involve the the diverse external factors or condition which
can affect the operation of firm and influence to make the significant decision in terms of
resources as well as capabilities. Based on the external condition of the particular region like
United Kingdom firm need to take effective decision in terms of the opportunity based on which
business are diversifies to carry out successful overseas trading (Guimón, 2011). Small
businesses unlike other entity are incorporate within the particular geographical area that hire
around 50 employees that earn the significant revenue in order to run the livelihood significantly.
Within United Kingdom, the small businesses has contributed to generate approximately 10
million pounds funds for an economy. Similarly medium business has gained the turnover of
around 50 million pound. So due to the globalization and support of various institution has
helped the organization to participate in the trading activities. Specifically within UK even the
small companies cover the diverse European region such as France, Netherlands which positive
influence the presence of global drivers. Thus, it effective assist to bear the low transportation
cost as well as tariff barrier in order to effective contribute in business operations. Even after
such uniform policies the UK often experiences market dynamics where after the existence of
Brexit changes the trading condition. Initially, the company was allowed to trade without any
restrictions but Brexit the interest and tariffs are charged. The global drivers include investment
opportunity, labor force as well as changes of productivity (UK’s global business environment.
2011). This favorably influence the economy in term to carry out the sustainable performance
and leads to the overall growth .
Discuss the rationale for SMEs to expand their business internationally.
Generally the SMEs even if gain the success within home market less likely expand the
business within international market because they have usually does not have the advantage of

economies of scale. Significantly these firm have the potential to operate in the global market
where government offer the subsidies in order to waive off the immense pressure of duties on
company. So the role of local authorities helps to establish the significant image of company and
successfully encourage the domestic company to generate foreign currency. In UK most of the
private sector have certainly expanded their business overseas and participate in the exporting
activities in order to gain potential market successful (Hilmersson and Jansson, 2012).
Therefore, this laid the region to constantly enhance their operations and come under the top list
countries on the basis of economic growth.
Critically evaluate how SMEs can take advantage of the international opportunities and
overcome barriers for global growth
SMEs basically involve the companies that carry out the operations within the confined
geographical area to carter the needs of the local resident who are in proximity. They the limited
manpower or capital that restrict the growth of company which is the major challenge of
company. Along with that they usually faces the issue of high turnover rate because most of the
staff are less reluctant to work in small organisation in comparison to large company (Izberk-
Bilgin, and Nakata, 2016). In addition to it, due to the low availability of capital to carry out the
day to day performance they need to restrict the operation and manage the flow of capital. This
at-times hamper the productivity of firm and affect the network of company.
Further, the opportunities which are associated with SMEs is that they usually gets the
relief from paying the high taxes unlike large companies. Most of the small business do not have
to pay custom duties and get the opportunity to compete with other businesses. The most
significant advantage is that they get the availability of easy sources of finance in order to laid
their functioning.
Explain trading blocs and agreements and examine the advantages of specific trading agreements
that would have a direct significance for your region and country
Trade blocs and agreement offer various advantage to the SMEs like application of such
contract encompasses the free flow of agreement that facilitate the organization to enhance the
economy significantly (LiPuma, 2012). This assist the company to carry out the trade practices
without paying the taxes to the area that have agreed upon the particular condition. Based on this
small business can freely operate their performance (UK trade agreements. 2019).

Explain the various tariff and non-tariff barriers that exist in the international trading
environment
Tariff barriers refer to the duties that needs to be paid by business in order to expand their
operations overseas. These import duties are either charges to enhance the prices of commodities
and restrict the quantity. Imposition of such duties safeguard the interest of domestic industries
and retain the interest of audience (Mahajan, 2012). These act as a barrier for SMEs because they
need to pay high taxes which minimise the profitability margin. Within non tarrier barrier tool
restrict the import as well as export of an organizations which led the small business to pay
unreasonable amount for the offering. So these are the restricts that can affect the operations.
Evaluate how international trading blocs and agreements stimulate and generate global growth
for SMEs
Trading blocs basically involves the government agreement that manages the trade
between diverse countries. This help to restrict the unnecessary restriction as well as limitation in
the trade affair by making uniform policies for the nation. Like, due to the existence of Brexit
UK have signed agreements with various countries in relation to the trade practices so that they
remain connected with various countries. CARIFORUM-UK economic partnership agreement is
a trading blocs that help the various SMEs to trade significantly in various countries like
Barbados and Bahamas and lavish the option to trade freely.
These agreement accelerate the growth of global economies by giving the advantage to
SME in context to trade significantly. It undergo the growing by covering the vast global area
effectively by managing the import as well as export of overseas trading effectively. It
effectively leads to the high profitability situation.

PART 2

CONCLUSION
From the above report it has been concluded that global business environment involves
diverse legal rules as well as regulations that can restricts trading activities beyond national
boundaries. free trade between nations. In relation to SMEs with the help of trade agreements
and blocs can get the opportunity to carry out exchange of commodities freely. Further, trade
and non-trade barrier act as a constraint that restrict the entry and customer base of host country.

REFERENCES
Books and Journals
Cantwell, J., 2013. Multinational corporations and innovatory activities: Towards a new,
evolutionary approach. In Technological Innovations, Multinational Corporations and the
New International Competitiveness (pp. 33-70). Routledge.
Filippov, S. and Duysters, G., 2011. Competence-building in foreign subsidiaries: The case of
new EU member states. Journal for East European Management Studies, pp.286-314.
Guimón, J., 2011. Policies to benefit from the globalization of corporate R&D: An exploratory
study for EU countries. Technovation. 31(2-3). pp.77-86.
Hilmersson, M. and Jansson, H., 2012. International network extension processes to
institutionally different markets: Entry nodes and processes of exporting SMEs.
International Business Review. 21(4). pp.682-693.
Izberk-Bilgin, E. and Nakata, C. C., 2016. A new look at faith-based marketing: The global halal
market. Business horizons. 59(3). pp.285-292.
LiPuma, J. A., 2012. Internationalization and the IPO performance of new ventures. Journal of
Business Research. 65(7). pp.914-921.
Mahajan, V., 2012. The Arab World Unbound: Tapping into the Power of 350 Million
Consumers. John Wiley & Sons.
Online
UK trade agreements. 2019. [Online]. Available through: <https://www.gov.uk/guidance/uk-
trade-agreements-with-non-eu-countries-in-a-no-deal-brexit>
UK’s global business environment. 2011. [Online]. Available through:
<https://ccbjournal.com/articles/uk-business-environment-positive-and-forward-looking>