Tapping into New International Market

Tapping into New
International Market

Table of Contents
Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
P1 Explain the global business environment in the context of small business............................1
P2 Discuss the threats and opportunities that is being faced by SME’s......................................2
P3 Advantages of international trading blocs and agreements....................................................4
P4 Discuss several tariff and non-tariff barriers that exist in international trade movement......5
P5 Discuss merits and demerits of importing and exporting and how a deal can be secured.....5
P6 Distinguish between merchandise and service import and export.........................................7
P7 Evaluate the different methods for SMEs to enter into international market.........................7
P8 Compare and contrast several methods to enter into international market............................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Tapping into international market provide an opportunity to small and medium enterprises to
grow as it help in diversification and modernisation of a business (Amagoh and Rahman, 2016).
In addition to this, it creates an enormous opportunity so as to gain competitive position across
the globe. This report is based on Rowlinson Knitwear which is a renowned brand in UK as it
deals with manufacturing of school uniforms and corporate wear. This report comprises on
various opportunities and threats that arise in a global business environment. This report covers
advantages of trading bloc and several importing and exporting practices involved in global
environment. Also, several methods of tapping into international market is covered in this report.
P1 Explain the global business environment in the context of small business
In an era of globalisation, there is changes in technology, taste and preference of customers
and many more and it involve exchange of ideas, goods or services across the boundaries from
one place to another (Basher, Haug and Sadorsky, 2016). It helps in economic development of
the country and also create an enormous job opportunity for small and medium enterprises to
expand heir business internationally. Therefore, this generates maximum revenue and increase
the productivity in a market. This report is performed on the basis of small enterprises in United
Kingdom, namely, Rowlinson Knitwear which deal with variety of garments such as school
uniforms and garments and planning to expand its operations in Australia which boost the
opportunities for a company and thus gain maximum exposure of large number of individuals.
Political conditions and stable rules and regulations aids company to facilitate smooth operations
of a business and thus this shape a bright future for making the business at an international level.
Proper planning and its execution of activities provide an opportunity for business to
grow at a global level. Global business environment has brought overall transformation in
business with respect to advancement of technology and aids in taking fast decisions and it also
simplify the overall working procedures with new and innovative ideas. Small and medium
enterprises create an employment opportunity for around 60% across the globe and also and its
contribution in the national revenue is around 11 million pounds (Chen, Kim and Kohli, 2017).
Today in a competitive era, it is necessary for SMEs to prepare an appropriate strategy so as to
gain maximum exposure in an around the globe. Foreign Direct Investment provide an enormous
opportunity to small and medium enterprises to increase investment and also develop a brand
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image in different parts of the country. New innovations and development create a new market
for small enterprises as these are always in demanding and help in conducting fast operation of a
business. Expanding business at a global level provide an enormous opportunity to small and
medium enterprises to prepare a strategy so as to gain competitive advantage and also help in
bringing new and advanced technology that help in conducting fast operation of business
efficiently and effectively. This boost the sales which in turn enhance the revenue and therefore
increase the productivity and profitability in a competitive market. In addition to this, the
manager of Rowlinson Knitwear is planning to expand its operations at a global level which
bring new and innovative technology which ensure success in future and also generate revenue
within the market.
P2 Discuss the threats and opportunities that is being faced by SME’s
The impact of Brexit in UK has created an imaginable chaos and create a negative impact
on the economy through several ways and also it affects especially the small enterprises (Hoda,
2018). By looking this aspect, the manager of Rowlinson Knitwear is planning to expand its
operations in Australia which ensure a greater growth in future. In this relation, PESTEL analysis
is conducted to scan both internal and external factors by determining the availability of
resources and it is presented as follows:
Political factors: The political condition in Australia is good and stable and has stable
ruling party since a long time (Horn, 2016). In this aspect, the manager of Rowlinson Knitwear
could provide a growth opportunity as it ensures same policies and procedures for a long time
and create a positive response for the company.
Opportunities: The stable political situation in Australia provide an opportunity to SMEs
to maintain a consistent policy for a long time and same rules and regulation to be implemented
which ensure greater transparency and accountability.
Economic factors: This constituent several factors such as inflation, level of
employment, GDP, competition and many more. Australia is regarded as the highest GDP and
also it ensures greater growth prospects in a business. The manager of Rowlinson Knitwear
generates more revenue and contribute to a significant position across the globe.
Opportunities: Foreign Direct Investment provide an opportunities to SMEs like
Rowlinson Knitwear to expand its operations which generates multiple streams of revenue and
boost the sales of company.
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