Tapping into New and International Markets

Tapping into New and
International Markets

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK 1............................................................................................................................................3
P1 Explain global business environment in small and entrepreneurial business run their
business...................................................................................................................................3
P2 Analyse threats and opportunities that SME faces in increasing competitive global
environment............................................................................................................................4
TASK 2............................................................................................................................................5
P3 Determine and analyse, benefits of international trading blocks and agreements............5
P4 Explain traffic and non-traffic barriers that exist in international trading environments..6
TASK 3............................................................................................................................................7
P5. Advantage and disadvantage of importing and exporting with secure deal.....................7
P6.Difference between merchandise and service imports and exports..................................8
TASK 4..........................................................................................................................................10
P7. Evaluate different methods in which SME can tap into international markets..............10
P8. Compare and contrast different modes SMEs can tap into international market, analyse
pro and cons of each methods..............................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCE.................................................................................................................................13

INTRODUCTION
In todays’ global environment, business units are seeking to enlarge their business
internationally. For tapping into new and international market firm need to have strong domestic
track record. International marketing tends to marketing principles that are used to fulfil the
needs and demands of consumers throughout the world. Global marketing includes activities of
more than one nation across world & converting as per consumers’ requirements of different
nation. Companies’ insight to gain competitive advantages for growth and development by
gaining entry at new international market (McCormick and Somaya, 2020). The following report
is based on British Millerian enterprise, situated in UK. They are the manufacturer of Textiles
and founded in 1880’s. Now they wish to enlarge their business at international level. This report
carries out discussion about global business environment along with its impact of main forces of
industry. Also covers different modes of traffic and non-traffic barriers that exist in internationals
trading environment. Further, advantages and disadvantages of importing and exporting. Lastly,
entry modes in international markets.
MAIN BODY
TASK 1
P1 Explain global business environment in small and entrepreneurial business run their business.
Global business environments refers to business environment in different independent
nation with components exogenous to the host environment of company along with decision
making on resources and capabilities. In includes external and internal forces which influences
business function along with entities (Wang, Helms and Li, 2020). For the same it become
crucial for companies to devise effective strategies and operates their business function
accordingly. Small business units also contributes a small part in economy and revenue
generation of nation.
With the help of large firm’s funds and resources, small enterprise can also reach their
goals and objective within small time period. It implies to imposition of low traffic barriers for
smooth running of business operation as well as flow of goods/ services. Apart from the rules
and restriction of other nation the dynamic encounter is also there. With relevance to this, the
impact of Brexit, which majorly affects the business operation within UK and for those which
carry out their business from outside. After the implementation of Brexit, companies of UK faces

so many challenges in order to run their business along with workforce. During that SEM are
those firm which helps nation to enhance the economy and GDP of nation as small companies all
contributes towards nation growth and development. The GDP ratio which services lucrative
place for enterprises to build small SME and develop job opportunities for seekers. When large
number of small companies operates their business at global level, then there will be increment
in economy and contributes in high incomes group. Significant contribution of SME towards
economy of nation assists political unset (Somaiah, 2020). All these types of firm generally
contributes to bring various economy in effectual along with appropriate manner. Therefore,
respective SME plays significant roles in order to raise the economy of nation.
P2 Analyse threats and opportunities that SME faces in increasing competitive global
environment.
Small and medium types firm have opportunity to enlarge their business for gaining
growth and development at extreme level. Likewise, it is vital for company to have operation
outside from hosting nation for the improvement of living standard and employments. In
relevance to this, threats that is faced by SME firms are as follow:
Threats for SMEs:
SME companies have limited number of staff with them for operating their business
operation as they have limited resources with themselves. By which they faces so many
problems in order to enlarge their business at global level as there is huge competitive in
business world. The primary issues that is faced by SME is lack of availability of resources along
with funding resources. As it requires lot of investment while expansion and for combatting with
competition, there is requirement of highly talented workforces (Li, and et. al., 2020). As well as
market accessibility and knowledge about market is also required. Another adverse effect could
be deficiency of economic scale and that implies that there is control in attaining the
organisational goal.
Opportunity for SMEs:
Increase revenue potential: Major benefits that could be undertake by the business unit
which operates at global extent can be increment in revenue generation by increasing the
consumers’ base. As increment in consumers base is directly proportional to increment in sales
and profit margin. In context of British Millerian firm, if they could enlarge their business, they