Tapping into New and International Markets

This presentation explores the rationale for SMEs to expand in international markets, advantages and barriers of international opportunities, trading blocs and agreements, and the global business environment. It focuses on Funding Xchange and its plans to expand in Canada.

Tapping into New and
International Markets

 Introduction
 Introduction to country and region & explanation of the global environment
 Analysis global business environment and the influence of key global drivers
 Rationale for SMEs to expand among international market
 Advantages taken by SMEs of the international opportunities and overcome barriers for global growth.
 Explain trading blocs and agreements and examine the advantages of specific trading agreements that would
have a direct significance for your region and country.
 Explain the various tariff and non-tariff barriers that exist in the international trading environment.
 Evaluate how international trading blocs and agreements stimulate and generate global growth for SMEs.
 Conclusion
 References
Table of Contents

In present time, every single business organisation is looking forward to expand it’s business at international market.
Specific reason that came in front of this was increasing competition in market, which leads SMEs to bring something
innovative for their customers so that they could sustain within the market for a longer period of time. There are
various needs along with demands of potential customers that also keep on changing regularly, which requires proper
attention by SMEs in order to gain business expansion related opportunities and to grab attention of consumers from
all over the world. Here, it has also been analysed that through focusing upon distinctive global market, a firm tries to
achieve the development and improvement at the appointed time. In this report, company that has been taken into
consideration is Funding Xchange. This company was found by Katrin Herrling (Co-Founder & CEO). Also, this
organisation operates as an online financial marketplace and aid its clients to perform different activities like sending
application to alternatives fund agencies, banks and many more so that they could effectively get the loans for
different purposes like business.
Introduction

In present report specifically, Barclays is going to focus on Funding Xchange which is a SME and looking forward to
expand it’s business in International Market. Also, webpage will consider information in relation to the region i.e.
North America and specific nation i.e. Canada. In present context, it can be said that Canada is a country in North part
of America. It has 10 provinces and three territories which are extended from the Atlantic to the Pacific and northward
into the Arctic Ocean. The total area covered by this nation is 9.98 million square kilometers which make it the
world's second largest country by total area. This country has impact of both British as well as French in 16thcenturies.
This country has passed with indigenous peoples, European colonization, confrontation, expansion and contemporary
era which help in building the history of this nation.
Canada is a good market for development of small scale industry and entrepreneurship opportunities this is because
this market is situated near the developed market of united nation there are number of supporter innovative ideas.
Machinery for production of goods and services within this industry is easily available in Canadian market. Number
of growth opportunities is more in Indian market for these enterprises especially who provide services. There are some
points which shows that how Canadian markets are suitable for global growth of small and entrepreneurial businesses.
Introduction to country and region &
explanation of the global environment

Analysis global business environment and
the influence of key global drivers
Global business environment can be defined as a business
environment in different nations which shows the impact of
different factors on business decision making, policies &
procedures and functioning which help business in earning
profit and growth in global world.
Some of the Key global drivers are presented
underneath:
 People: People are the first driver of growth which
helps an organization in increasing its market share as
well as profitability. In context of Funding Xchange,
these peoples are customers and staff of firm where it
won't find its business the play an important role in
growth and development how is the work for it.

 Technology: Technology is also a driver for funding exchange as there is continuous development in technology
of Canada this is because it is surrounded by developed nation which have great influence on technological
development which can be helpful for small businesses open in new sector they will get benefit of advanced
technology which bring smoothness in working of these businesses.
 Finance: There is one more key driver in Canadian market that is availability of finance. It is the most important
in growth because finance is the backbone of all functions in farm land for performing all the functions smoothly
a firm must be financially stable and strong.
Continue…

There are number of ways which can be used by the small scale industries for expanding business operations
internationally, some are mentioned as:
 Sales expansion: This is the first step in increasing the market of two international level where from have to
focus on increasing the sales of its goods and services this can be increased by attracting more and more customer
towards form and identify new potential market the huge profit range will help form in adopting foreign economic
policies and procedures.
 Innovative idea: This will always help small scale industries in expanding their business to international level as
innovative idea will help company in making its different identity in market and this identity will take it two
international levels.
 Cost reduction: cost reduction method is all also useful for internet internationalization of firm’s product and
Service. Real small scale industry key news cost reduction method which helps in completing international brands
because of cost sector and it can easily expand its business to international level.
Rationale for SMEs to expand among
international market

In today’s business world globalisation has helped SMEs to grab a wider area, which was not possible before. In other
words, consideration of various innovative approaches and with the help of unique ideas of conducting business has
helped SMEs like Funding Xchange to gain ample number of advantages while conducting business at international
market. Not only this, but it helped companies in reducing the risks of various challenges that were faced by them in
past like trade barriers and so on. In present context, if it is talked about Funding Xchange then this company is
looking forward to expand it’s business and this could effectively be done through holding up a unique market entry
strategy. Also, some of the advantages that are already taken by SMEs while expanding their business in a country like
Canada are given underneath:
 Foreign investment opportunities: This is considered to be the primal most opportunity that reduced a range of
barriers that a SME has faced in the past while expanding business. This means that organizations with global
activities could effectively gain competitive advantages by rewarding venture openings that may not exist in their
nation of origin. For instance, numerous administrations around the globe offer motivating forces for
organizations hoping to put resources into their district. Accordingly, United Kingdom’s firms ought to
consistently do their exploration before settling on a worldwide development choice. Therefore, it is pretty much
clear for Funding Xchange will directly raise investments for itself through campaigning their business idea of
expansion in a country like Canada.
Advantages taken by SMEs of the
international opportunities and overcome
barriers for global growth.

 Access to talent: Another advantage that came in front, which has also reduced the chances of different barriers
that company might face while expanding business at international level. This means that, globalising would
easily help Funding Xchange to gain ample number of competitive advancements in global business environment
of Canada. It is said because, global ability would directly improve advancement yield inside an organization. For
example, that is one motivation behind why outside business sectors that invite worldwide business people and
talented laborers frequently have denser and progressively fruitful beginning up different business markets.
Continue…

Trading blocs (Exchange Coalition) can be defined as intergovernmental understanding, regularly part of a provincial
intergovernmental association, where hindrances to exchange are diminished or reduced among the taking part
nations. Exchange alliances can be remain solitary understandings between a few states or part of a local association.
Funding Xchange, which is an online financial service provider is looking forward to expand its business in Canada as
it is considered to be one of the crucial growing nation that has helped not only International business organisations
but SMEs to grow in much effective and in efficient manner.
If it is analysed then it is said that targted country i.e. Canada and Home country of Funding Xchange has already
made an agreement of conducting business with a range of rules, regulations, norms and so on. Basically, Canada- UK
Trade Agreement Britain and Canada has worked together over negotiations towards a Comprehensive Economic and
Trade Agreement (CETA) between Canada and the European Union.
Explain trading blocs and agreements and
examine the advantages of specific trading
agreements that would have a direct
significance for your region and country.

The agreement has been ratified by the European Parliament and is provisionally in force since 2017 (Canada-UK
Free Trade: Balancing progressive trade policies and economic benefits, 2020). Also, it consists of a range of
advantages and some of these are given underneath:
 Fair and free trade: Giving shields to secure condition and social measures can be considered as one of the
crucial advantage of this agreement that took place in between European Union and Canada, including work
change underpins. Drawing exercises from ongoing unhindered commerce exchanges (the Canada-EU
Comprehensive Economic and Trade Agreement, the United States-EU Transatlantic Trade and Investment
Partnership, and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership) feature best
practices in building backing to beat household resistance. This will help company i.e. Funding Xchange to gain
competitive advantages and may also lead to enhance their performance level in much effective and in efficient
manner while conducting business within Canada.
Continue…

In today’s business industry, it has been analysed that international trading environment consists of both tariff and
non-tariff barriers and some of these are discribed in beneath in a detailed manner.
Some of tariff barriers are given underneath:
 Transit duties : This is alluded to the tax assessment approaches which is for the most part charged by the
administrative experts on the item and administrations which are transmitted starting with one spot then onto the
next. This is consider as one of the significant obstructions of the SME organizations face while activity at the
universal level.
 Export tariff: Another barrier that came in front i.e. bigger piece of the overall industry of as the vast majority of
the individuals rely on the agribusiness. Chiefly minerals and horticulture items are burdened as the agribusiness
items are the most imported items according to the report.
Non-tariff barriers that belongs to international trading environment are given underneath:
 Licenses: A government grants a license to something like an enterprise, & enables its service to import into
another nation the same form of industry. As example, this might become the ban against foreign products, &
several businesses might become issued permits to enable themselves and function like importers. It establishes a
competitive constraint which raises costs that customers value.
Explain the various tariff and non-tariff
barriers that exist in the international
trading environment.

Business environment consists of both SMEs and organisations like TESCO PLC and many more that are conducting
businesses at both domestic and international level. Basically, internationalizing trading blocs allong with agreements
stimulate has restriced foreign companies to conduct business to a particular level. This means that, an organisation
which is already at a huge level can only perform business to a certain level that the foreign country has allowed. This
is being done by parliament of different nations to support Small and Medium Enterprises, so that they could earn
much. Reason that came in front of this was that, it directly helps the whole country to grow as the profit and revenue,
which has been generated is going to put positive impact on it’s economic conditions only. Therefore, if Canada
would not allow Funding Xchange to conduct business or may restraint it then it is may be possible that company’s
plan may directly get fail and would lead company to go through many losses like negative impact on goodwill, low
productivity, high expenses and so on.
Evaluate how international trading blocs
and agreements stimulate and generate
global growth for SMEs.

With the help of above presentation , it is being concluded that meeting specific requirements of country would help a
company in sustainining within the market for a longer period of time. Also, different tariff and non-tariff barriers may
break or help a businees company in gaining competitive advantages. Away with this, international trading blocs has
helped SMEs in grabbing a good market in both domestic and international market.
Conclusion

Online
Canada-UK Free Trade: Balancing progressive trade policies and economic benefits. 2020. [Online]. Available
through: <https://www.sshrc-crsh.gc.ca/society-societe/community-communite/ifca-iac/evidence_briefs-
donnees_probantes/canada-uk/beaulieu-dawar-eng.aspx?wbdisable=true>.
References

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