Tapping into New and International Markets

This article discusses various methods for small businesses to tap into international markets, including exporting, franchising and licensing, and joint ventures. It explores the advantages and disadvantages of each method and provides recommendations for SMEs. The article also highlights the importance of market research and understanding export processes.

Indirect exporting method: This method depicts the movement of goods with the help of
any mediator in foreign countries and region. For this independent agents and export
management companies are responsible to sell intermediaries and also responsible for
exporting and moving products at foreign countries (Uncles, 2018). Some of them
advantages and disadvantages are as follows:
Advantages: It assists in facilitating less risky to export their products and services with
the help of middleman and sale intermediaries. Despite of this limited amount of
investment and time is needed in comparison to direct investment.
Disadvantages: It reduces the margin of profit as in this process commission agent and
middleman is also involved (Lo and Campos, 2018). It also control over the sale of
transactions is it lead by the direct exporting.
In order to secure the deal in export process use of direct method is recommended two
small organisations as it lead more control over the sales and transactions full stop despite
of this efficient and effective market research and examinations also done by small
businesses in order to identify better export opportunities at international market.
INTRODUCTION: Market is defined as an area which includes buyers and sellers under
its consideration. Here, two or more parties are collected to exchange their products and
services. Market can be either physical outlet in which people face to face meet or online
market in which no direct contact between buyers and sellers.
P5. Advantages and disadvantages of importing and exporting process and how a
deal can be secured
Export is a procedure which includes exchange and selling of goods and services to
customers in specific areas in regions with the purpose of having more and more market
share and profitability. Two types of export process is discussed as under in the context of
small businesses:
Direct exporting: This procedure of exporting includes the sale of goods and services
which are developed in abroad without the involvement of any mediator (Dwyer and
Vongvisouk, 2019). Under these small organisations take responsibilities for selling
goods and services across the country and also responsible for dealing in the foreign
organisations directly. Its advantages and disadvantages are as follows:
Advantages: Intermediaries are eliminated from the process of exporting so profits are
more for the organisation. It assists in providing huge control over the transaction of sales
and makes it more effective and efficient in terms of developing direct connection with
customers.
Disadvantages: It needs more time and money e in order to attract customers who belong
from foreign countries without help of middleman. These organisations are completely
responsible for the safety and risk which are involved in the transaction of manufacturing
in logistics.
Tapping into new and international markets

Commercial invoice: It is considered as the legal document among the exporter and
importer which depicts the information about the selling of goods and services and the
amount of export which is imposed by government in terms of custom duty.
Terms of payment: It describe all the concerning terms and conditions associated
payment and also define the allowed period for payment, due amount, mode of payment
and many more (Backaler, 2018).
Customs document: It depict all the suitable details regarding the shipment like airway
bill, commercial invoice, insurance certificate and other associated documents which is
required to clear custom.
TASK 4
P7. Different methods in which SMEs can tap into international markets
The different methods which can be opted by SMEs in order to type into the international
market which are as follows:
Exporting: This process is concerned with the production and manufacturing of product
and services in the domestic country in shipping them and moving to other Nation across
the border (Steffen and et. al., 2018). It is useful in providing in easiest way which is
helpful for small businesses in order to enter into an international market.
Franchising and Licensing: This is a process in which small organisations allow few
other firms and individuals in the terms of country to imitate and sell their goods and
services at international level. Until licensing and franchising, duty and fees is charged by
other person as it is the making and imitating fees of the idea and product. This method
can be used by SMEs to sell their products and earn more profit in the international
market.
Joint Venture: It is the business procedure in which two or more parties are involved in
the making or formation of an agreement with the purpose of attaining and accomplishing
the particular target (Sinha and Sheth, 2018). For this some organisations development
agreement for joint venture with other organisations that belongs to international market
or operates at global level in order to tape and get access in the international market.
P6. Difference between merchandise and service imports and exports
Basis Merchandise Service imports and exports
Definition It is a practice or procedure
it is concerned with the sale
and movement of goods and
services which are tangible
in nature across the border of
retail customer (Zhang and
Tse, 2018).
The services are considered as the
procedure which is concerned with the
movement of intangible product and
services across the international border
of country.
Class of
things old
Under this, only tangible
goods and services sold and
moved among different
countries.
Under this export and import of
intangible things are concerned with
transfer and providing services at
various regions of world and countries
(Milner-Gulland and et. al., 2018).
M4. Application of suitable import and export process and provide suitable
recommendations
The procedure of export is lengthy in terms of activity which includes various steps. As it
is started with providing the export order with types of written agreement among exporter
and importer and after that analysis and confirmation of order is made by considering the
terms and conditions of contract (Pizarro Milian and Davidson, 2018). Furthermore next
step include clarifying the process from the central excise indifferent legal formalities
which are required to make by the exporter. For this waste documentation are required
which are discussed as under:
Letter of credit: It is written agreement which is issued by bank ok in terms of guarantee
buyers who is the importer in the context of payment to seller who is exporter which
suitable amount.
Packing list: It is the detailed list which describes and includes various information about
the products and the packaging which is associated with shipment.

P8. Comparison of ways by which SMEs tap into international markets and also assess
the pros cons of each method
Method
s
Advantages Disadvantages
Exporting It leads to development in the
production and productivity e
for better profit margin by
providing easy way to enter
into the international market
(Lin, 2018). It is also assist in
having excellent exposure to
the unique ideas and
management practices which
provide increment in
competition and
competitiveness.
This process leads to increase in
the operating and manufacturing
cost of small businesses is the
requirement of deal with export
rules and legislations. For this it
is required to make modification
in products and services which is
faced by the small businesses as
it hampers monitoring and sale
in the domestic market.
Franchising
and licensing
It includes the risk and
responsibilities it is concerned
with the growth and success of
goods and services which is
offered by small businesses in
order to share profit with both
the parties who belongs from
international level. Here,
limited amount of capital is
required which leads to high
return or investment with the
help of licensing and
franchising method at
international level.
It is related with the risk of
imitation and violation of
trademark and copyright on the
intellectual property of small
businesses which is high in this
method (Khan and Lew, 2018).
Joint Venture It assists in providing new
and delightful vision and
expertise knowledge to
SMEs which helps in
effective operation and
functioning of them at
international level. Joint
venture also leads to the
agreement among two and
more parties so it helps in
providing access of the
better resources to foreign
organisation such as
expertise manpower and
updated technology.
Joint venture can be frugal
as it leads to increase in
conflicts which are
concerned with the
corporate culture and the
decisions about the
operation activities. And
also describe the flexibility
of small businesses which
depicts restrictions as it is
difficult to maintain
balance and coordination
with other parties (Steiner
and Fan, 2019).

M5. Evaluation of various methods which is used by SMEs and also provide valid
recommendations
By considering the above discussion it is considered that export method is useful in
easiest way as it helpful for small businesses in order to enter in the international market
and also take competitive advantage with the help of unique ideas full stop despite of this
use of franchising and licensing method helpful in sharing risk and also require low
capital investment in order to run their business at global level (McCollum and Findlay,
2018). In addition to this joint venture is helpful in developing better connection among
the foreign organisation and also provide access to international market but it create
rigidity and developed the chances of conflict in decision making process.
Thus, exporting method is recommended to SMEs is it does not involve any risk to their
intellectual property and also helpful in operations and manufacturing at the various
locations as it is the easiest way to enter in the international market.
REFERENCES
Books and Journals
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the China-Lao rubber frontier. Territory, Politics, Governance. 7(1). pp.96-114.
Glare, T. R. and O'Callaghan, M., 2019. Microbial biopesticides for control of
invertebrates: Progress from New Zealand. Journal of invertebrate pathology. 165. pp.82-
88.
Hollinshead, G., 2019. Global value chains in international knowledge work: networks,
stratifications and labour markets. Global Networks.
Khan, Z. and Lew, Y. K., 2018. Post-entry survival of developing economy international
new ventures: A dynamic capability perspective. International Business Review. 27(1).
pp.149-160.
Lin, J. Y., 2018. China’s Rise and Opportunity for Structural Transformation in Africa.
Journal of African Economies. 27(suppl_1). pp.i15-i28.
Lo, F. Y. and Campos, N., 2018. Blending internet-of-things (IoT) solutions into
relationship marketing strategies. Technological Forecasting and Social Change. 137.
pp.10-18.
McCollum, D. and Findlay, A., 2018. Oiling the wheels? Flexible labour markets and the
migration industry. Journal of Ethnic and Migration Studies. 44(4). pp.558-574.
CONCLUSION
Thus, it is concluded that various methods as discussed in the context of small
businesses which are helpful for them to tap into international markets such as exporting,
franchising and licensing and joint venture.