Tapping into New and International Markets

Unit 43 Tapping into New and
International Markets
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Table of Contents
INTRODUCTION ..........................................................................................................................3
P1 Explain the global business environment in which small and entrepreneurial businesses
operate..........................................................................................................................................3
P2 Analyse the threats and opportunities that Captify face in an increasingly competitive
global environment......................................................................................................................3
P3 Determine and analyse the advantages of international trading blocs and agreements..........4
P4 Explain the various tariff and nontariff barriers that exist in the international trading
environment.................................................................................................................................5
P5- Advantages and disadvantages of exporting and Importing.................................................6
P6 Explain the differences between merchandise and service imports and exports....................7
P7 Evaluate the various methods in which SMEs can tap into international markets.................7
P8 Compare and contrast the various ways Captify can tap into international markets,
assessing the pros and cons of each method................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12
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INTRODUCTION
Every business need to expand a global level so that they sustain for long term. For that it
require to analyse market and then develop strategies accordingly. However, there are various
challenges which is faced by SME in international market (Falahat. and Migin, 2017).. An
international marketplace is considered as any geographical region where a firm conducts
business outside their boundaries of a firm's home nation. In contrast to that domestic
marketplace is in the boundaries of their home nation.
The report will lay emphasis on global business environment in which small and
entrepreneurial businesses operate. Also, it will be described about threats and opportunities that
Captify face. Moreover, advantages of international trading blocs and agreements and tariff and
nontariff barriers are explained. Besides, pros and cons of exporting and Importing and
differences between import and export will be discussed. At last various methods in which
Captify can expand is mentioned.
P1 Explain the global business environment in which small and entrepreneurial businesses
operate
It is found that there are different elements in which business environment operate. Any
change in this highly impact on growth of business. They are not able to enter in new market.
Small enterprises requires to be upgrade their management skills as well as their capacity in
order to gather he data as well as technology base. Government requires improving SME such as
Captify in order to access to financing, international markets and information infrastructure. It
also provides legal ,regulatory as well as financial frameworks in order to conduct
entrepreneurship as well as small company start up.
P2 Analyse the threats and opportunities that Captify face in an increasingly competitive global
environment.
Within the foreign marketplace, firms must fully focus the environment of abroad within which
they plan to operate. Cultural differences, Politics as well as economic environment can focus
both threats and opportunities within the market (Falahat. and Migin, 2017)..
Also intense nationalism can also lead to the difficulties as within this it can boost the
interest as well as culture of one nation over other nations. Iran and New Guinea which are
strongly nationalistic nations also discourage investment through foreign nations.
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Language is considered as also vital aspect of culture as marketers also take care within selecting
products names as well as translating slogans so that it can not convey wrong meaning. Such as
Coca Cola within Chinese character means bite the wax tadpople.
Each nation has its own traditions as well as customs that focuses the business practices and also
impacts negotiations with foreign consumers. Within many nations personal relationship are
considered as most vital as compare to the financial considerations. Also, within Mexico can also
lead to the lost sales. In addition to this Negotiations within Japan also includes long evenings of
drinking, dining as well as entertaining that presents some culture dos and don'ts.
Economic development level varies
Business opportunities are also better within nations that have economic infrastructure
within plabite the wax tadpole. Infrastructure is also considered as basic institutions as well as
public facilities within the development of economy depends. It also involves the banking and
money system that gives the major investment loans to country's business, the education system
that aids out to be more incredible varieties of basic research as well as skills that can run
actually the production line of the nation such as communication systems and extensive
transportation like airports, telephones, interstate highways, postal systems all of them link each
and every piece of geography into more than one marketplace.
P3 Determine and analyse the advantages of international trading blocs and agreements.
Advantages
This leads to tariff removal which leads to more of trade creation as a result brings more
of business opportunity as a result builds with job opportunity in marketplace for individuals.
This leads with lowering prices for customers and increased opportunity for exporters.
By this it helps in enabling increased specialisation which leads with effectiveness of
activities, hence as a result implies with economies of scale which ascertain with lowering cost
of average from the increased output.
It is also of advantage as of catch up effect where countries joining with rich trading
blocs can advantage from investment which is being inward and increase with opportunities of
trade. It leads with various economic and cultural ties. This helps in giving small countries to a
greater say in various global trade agreements.
Increased competition – The removal of tariffs helps in creating greater choice for its consumers,
where domestic and local companies have greater incentive to cut cost to be competitive.
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