Tapping into New and International Markets

Tapping into new and
international markets

Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Explain the global business environment in which small and entrepreneurial businesses
operate..........................................................................................................................................1
P2 Analyse the threats and opportunities that face SMEs in an increasingly competitive global
environment.................................................................................................................................2
TASK 2............................................................................................................................................3
P3 Determine and analyse the advantages of international trading blocs and agreements.........3
P4 Explain the various tariff and non-tariff barriers that exist in the international trading
environment.................................................................................................................................4
TASK 3............................................................................................................................................5
P5 Determine the advantages and disadvantages of importing and exporting and how to secure
a deal............................................................................................................................................5
P6 Explain the differences between merchandise and service imports and exports...................6
TASK 4............................................................................................................................................7
P7 Evaluate the various methods in which SMEs can tap into international markets................7
P8 Compare and contrast the various ways SMEs can tap into international markets, assessing
the pros and cons of each method................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Global market expansion is stated as the vital efficacious aspects which is usages by firm to
tap into international marketplace along with intent of acquiring success and growth. The main
objective of this report is to obtain understanding related to international market where many
threats as well as opportunities are determined which may be enhanced at business surroundings
(Diener and Piller, 2020). As per the scenario, the undertaken SME’s is Airdri, it is a warm hand
dryers manufacturers having headquarters is in Oxfordshire, United Kingdom. The points that
are going to be discussed in this report are international business environment description into
SMEs, determination of threats as well as opportunities, identification of international trading
agreement and blocs advantages. Additionally, barriers like non- tariff and tariffs, exporting as
well as importing pros and cons, differentiation between service and merchandise imports &
exports are explained. Beside this, the many methods with assistance of which SME’s may tap
into international market with its benefits and drawbacks are also stated in this report.
TASK 1
P1 Explain the global business environment in which small and entrepreneurial businesses
operate.
United Kingdom is considered as one of the stabilised country which at recent times facing
economical crisis but then also are very much affirmative, future seeking as well as always open
to new business of company. It has been also analysed that government as well as legislative
authorities of particular country are incorporated into rendering services to SMEs as they are
highlighted as the backbone for the country’s economy. These results in contributing their
market share towards enhancement of Country’s GDP. This leads towards economic
development which generates job opportunities within company (Gardner, 2020). As UK is
growing country with aids of their private sector enterprises and obtain the sixth position in all
over the world. In addition to this, the United Kingdom service sector is contributing more
within growth of economical system which is around 80% of total gross domestic products
which is gained mainly from SMEs
It is also undertaken that SMEs are firms which usually operates their practices at smaller
level and confines only to some specific countries. In relation to United Kingdom, it is
determined that small firms incorporate less than 50 workers and also annual turnover is not
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above 10 million pounds. Along with this, a medium enterprise incorporates not more than 250
employees as well as annual turnover is approx 50 million pound or less. There are organisations
which operate in such surrounding where they imports goods or services from various other
regions to run their business in successful way and exports overall their manufactured products
into several countries across the world. Whole SMEs with entrepreneurial firms of united
Kingdom mainly operates their practices within global business surroundings which get
supported by its government as well as legislative bodies. It have been identified that various
SMEs within UK operates their activities into European region where they export their goods to
many European countries which incorporates Spain, France and so on. In this context, overall
transportation cost will be reduced because of EU, SMEs needs to pay fewer amounts during
goods exportation.
Additionally, Within United Kingdom, SMEs develops their overall global atmosphere
with aids o that they may successfully perform its enterprises with market of America, Asia and
other areas of African region. It has been concluded that surroundings has been enhanced which
modify the opportunities to develop and grow at competitive marketplace which leads to firms
contribution towards overall GDP of particular country.
P2 Analyse the threats and opportunities that face SMEs in an increasingly competitive global
environment.
Global business surrounding along with influences of vital international drivers
This is determined that atmosphere of global business of UK marketplace are so much
dynamic which modifies itself by changes into external environment elements. External
surroundings are recently tackling huge issues and challenges because of new guidelines in
relation to raising BREXIT at work areas. SMEs of United Kingdom has been allowed to do
trading in freely way within several European countries without facing any forms of confines
before implication of BREXIT, but present SMEs as well as entrepreneurial entities has to pay
some reasonable amount of exchanges rate. There are many forms of global drivers which have
competencies to influences overall economic system of country (Goodman, 2020). Some of main
drivers are workforce, finance and many others. There human resource within United Kingdom
marketplace is so much expensive because of which respective countries SMEs procures
personnel from the region of Asia, this will aids them to decrease their overall cost and assists
them in efficient and optimistic manner. Instead of this, in respect of productivity as well as
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