Tapping into New and International Markets

TAPPING INTO NEW
AND INTERNATIONAL
MARKETS

Introduction
• The UK is one of the largest players in the international trade. According to World
Bank, trade accounted for sixty two percent of its Growth Domestic Product in the
year 2017.
• United Kingdom is the sixth biggest importer of commercial services, the world’s
second largest exporter of goods.
• The United Kingdom imports majorly transport and machinery equipment,
manufacturing products, chemicals, food, fuels, live animals, beverages and crude
materials.
• The United Kingdom is located in the European region. The country enjoys
regional trade with its neighboring countries in Europe. Such regional trade are
conducted through trade blocks such as the European Union and the United Nations
Trade and Development organization.

Analysis of Global Business
Environment
• Currently, the United Kingdom is one of the world’s top ten manufacturers (6 of
the world’s top ten vehicle makers are located in the United Kingdom) and the
world's biggest economy (BARTLETT, C. and BEAMISH, P, 2011, pp15).
• United Kingdom is the 6th biggest trading country and also the world’s 2nd biggest
exporter of services after the United States. The county continues to be the most
appealing location in Europe for European headquarters: majority of the oversees
organizations have European headquarters in the United Kingdom compared to
Germany and France put together.
• The United Kingdom is the simplest location to run and set up a business in
Europe. A study conducted by World Bank notes that it takes thirteen days to
establish a business in the United Kingdom, contrasting to the average of fifteen
days of the OECD.

Influence of Key Global Drivers In
the United Kingdom
•Rule of Law
•UK’s rule of law is well developed, and the World Economic Forum’s 2017-2018 Report for Global Competitiveness positioned the United Kingdom eighth out of one hundred and
thirty seven. Secluded examples of corruption and bribery come about in the UK but are vigorously prosecuted.
• Government Size
•Forty-five percent is the highest rate of income tax, while twenty percent is the highest rate of corporate tax. Other taxes include environment and value added tax. The general
burden of tax is equal to thirty three percent of the accumulated domestic income.
•Regulatory Efficiency
•UK’s regulatory atmosphere is transparent and efficient. Beginning a business in the United Kingdom consumes less than a week. The labor market is comparatively efficient, and
bankruptcy proceedings are direct.
•Open Markets
•United Kingdom has an accumulated value of imports and exports that is equivalent to 62 % of the Growth Domestic Product. Two percent is the average applied rate of tariff. Some
of the European Union focused non-tariff trade obstacles including product-specific and technical subsidies, regulations and quotas can be removed or adjusted after Brexit.