Tapping into New and International Markets.

Tapping into New and
International Markets

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Explain the global business environment in which small and entrepreneurial businesses
operate....................................................................................................................................3
P2 Analyse the threats and opportunities that face SMEs in an increasingly competitive global
environment............................................................................................................................4
TASK 2............................................................................................................................................5
P3 Determine and analyse the advantages of international trading blocs and agreements....5
P4 Explain the various tariff and non-tariff barriers that exist in the international trading
environment............................................................................................................................6
TASK 3............................................................................................................................................8
P5 Determine the advantages and disadvantages of importing and exporting and how to
secure a deal...........................................................................................................................8
P6 Explain the differences between merchandise and service imports and exports..............9
TASK 4..........................................................................................................................................11
P7 Evaluate the various methods in which SMEs can tap into international markets.........11
P8 Compare and contrast the various ways SMEs can tap into international markets, assessing
the pros and cons of each method.........................................................................................12
CONCLUSION..............................................................................................................................14
REFERENCES..............................................................................................................................15

INTRODUCTION
Trading within global market is the method of tapping within nee international market in
order to get business growth and development as well. This aspect is highly associated with those
businesses which are involved in importing and exporting of their goods to international markets.
This report is prepared with a view to enhance knowledge of international environment and those
opportunities which are available within market so as to expose the business within global
periphery. For understand these concepts the company taken with this report is Barclays which is
a financial service provider headquartered in London, UK. In this report global business
environment of UK is examined so as to analyse prevailing opportunities and threats for business
development. Further this report includes tariff and non- tariff barriers so as to examine benefits
within international trading agreements (Barac and et. al., 2016).
TASK 1
P1 Explain the global business environment in which small and entrepreneurial businesses
operate.
United Kingdom is a country within Europe region which facing global turmoil within
their economy but still it is a country of forward looking approach and having an open economy.
In this country small businesses are having high value as they recognise small businesses as
backbone of the country so these are required to be developed so as to increase overall GDP rate
and employment within country. UK is the sixth largest country in economic position which is a
result of their private sector enhancement. UK is considered as financial sector of the world as it
is having high globalisation in their economy. In UK most of the organisation sectors are SME’s
which contributes near about 80% to the total GDP amount.
Small and medium scale business enterprises are having business in few regions only and
they operate their business within small scale. In the background of UK, small business
enterprises are having less than 50 workforces in their business and its turnover is less than 10
million pounds a year. Whereas medium business enterprises consists of less than 250 employees
and maximum yearly turnover of 50 million pounds. These business organisations are involved
in importing raw material so as to make finished products and those finished product are

exported to other region of world. These businesses are operated at global level so they affect
global business environment as well. In UK SME’s and other entrepreneurial organisation are
helped by government so as to assist those businesses in operating within global markets. In UK
SME’s sums to be 98% of whole business population so this is the major reason that UK is
willing to earn three pound for every one pound spent within the business. Major SME’s in UK
is having global presence and they are operating their business within Europe region. SME’s of
UK generally export their goods to Europe countries such as Spain, France, Netherlands and
many more (Kaynak and Lew, 2018). By exporting goods to native countries it saves additional
transpiration cost by which business may have high profits in short run. On the other hand by
exporting goods in native countries this helps them to save additional exporting cost and interest.
SME’s of UK has good trading relationships with Asia, America, and some regions of
Africa this helps them to broaden global business environments. This business environment
gives them chance to enhance growth and development opportunities so as to give immense
contribution in GDP and national income of their country.
P2 Analyse the threats and opportunities that face SMEs in an increasingly competitive global
environment.
Global business environment and the influence of key global drivers
UK is having dynamic global business environment as it is having high capabilities to change
with relation to prevailing external environmental factors. The business environment of UK has
faced so many changes due to Brexit. Before implementation of Brexit SME’s of UK had liberty
to trade within other countries without any barrier but after implementing Brexit SME’s and
other entrepreneurial businesses within UK has barred to pay high interest rate of exchange rates.
Various key drivers are there which are having high impact on economy of the nation. These
drivers include labour force, productivity and investment etc. UK is having expensive labour
force as a result SME’s of UK receives labour form other Asian nation so as to reduce their
overall cost on labour which is having positive impact on economy of the nation. In UK
industrial growth has been seen due to other global drivers such as productivity and overall
investments (Swoboda and Olejnik, 2016).