Tapping Into New and International Markets

Tapping Into New and
International Markets

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P2: Threats faced by SMEs..........................................................................................................2
M1: Evidence based analysis of global business environment....................................................3
M2: Analysis of implications of threats and opportunities..........................................................3
TASK 2............................................................................................................................................3
P3: Advantages of International trading blocs and agreements...................................................3
P4: Tariff and Non-tariff barriers.................................................................................................4
M3: Advantages of International trading blocs and agreements.................................................5
D1: Critical evaluation of SMEs..................................................................................................6
TASK 3............................................................................................................................................6
P5: Advantages and Disadvantages of Importing and Exporting and the way a deal is secured 6
P6: Difference between merchandise and service imports and exports.......................................7
D2: Recommendations for SMEs................................................................................................8
TASK 4............................................................................................................................................9
P7 & M5: Evaluation of various methods....................................................................................9
P8: Pros and Cons of methods to tap into international markets...............................................10
D3: Justification of recommendations.......................................................................................11
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
International markets are the markets which offer opportunities related to companies for
expanding globally in an effective manner (Alfaro and Chauvin, 2016). Due to the advent of
globalization the companies now have multiple opportunities which are present in the external
business environment. This has been made possible due to the integration between the various
economies in the world. By expanding into these markets the organizations can ensure that they
are able to enhance their overall profitability level. By tapping into opportunities provided by
them the firms can make sure that they are able to achieve the various types of goals and
objectives without problems and issues. In this report, focus will be made on Relove
Technology. It is a company which provides telecommunications equipments to the various
people. It is looking forward to expanding into Canada. In this assignment, specific analysis will
be made on analysis of opportunities and threats, illustration of advantages of trading blocs.
Additionally, determination of importing and exporting process and evaluation of ways in which
SMEs can tap into international markets will be discussed as a part of this project.
TASK 1
P1: Global business environment
Global Business Environment: It means societal and task environment that is influence
by the global forces in business. It includes factors related to economic, technological force,
global labour, global competition, political and legal forces etc. Small and entrepreneurial
business perform their business operation after facings all the challenges related to these above
factors. It involves internal and external environment. Decision making related to use of
resources and capabilities are also influenced under it (Bateman, 2019). Relove Technology is
UK based company that works as telecommunication equipment suppliers. As the organisation
want to expand their business in Canada. Adoption of technology and effective communication
are business environment that was like by the company in the place. Business environment of
Canada is rated free as the government reduce spending and reform labour laws to create flexible
labor market. Many factors that is to faced by this organisation in business environment are
explain in detail in below mentioned paragraphs.
Legal landscape: As the business of Relove Technology operate in different sovereign
countries so tax rules, laws and various regulations of different countries effects their business
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both positively and negatively. By keeping with numerous jurisdiction the company ensure that
they work as per law in that particular place. In Canada income tax rate is 33% and corporate tax
rate is 15% that makes negative impact on profit margin of the company because due to higher
rates of tax huge amount of revenue is paid to government as taxation. As it reduces the profit
and effects the growth of the business also.
Understanding other language and culture: At the global market place culture and
language are quiet similar in most of the countries but some has different also. It is necessary for
Relove technology to learn different languages and cultures to connect with their customers and
to succeed their business across border. If the organisation expand their business in Canada
knowledge of different languages like French, English are also increase. As due to business
expansion there is great interaction among people of different religion like Catholics, Romans,
protestant etc are exist. As language and religion help the company to grow. If the company
starts their business in Canada persons of different religions can easily available to work in less
pay that reduces the expenses and increase the profit that leads to growth in the market.
Technology and communication:To compete globally, internet and networking helps
the small companies and entrepreneurship business most. Efficiency, sale and profitability of
Relove Technology is effected if they adopts unique technology in different countries and
centralized communication system is greatest challenge faced by this company. Canada has
developed into a hotbed of tech entrepreneurship. As it help the organisation to do business at
large scale with less wastage of time and resources in this way profit margin also increase so it is
beneficial to expand business in Canada.
environmental conservation: Reversing the effects of global warming and to conserve
environment are major objectives of all the countries. Rules related to recycling, energy
consumption and green packaging is to be followed by Relove Technology to save environment
(Cusumano, 2020). Due to different suitable weather and climatic change it helps the company to
establish business in Canada. As it help to expand business by increasing revenues that help the
company to survive in the competitive market.
P2: Threats faced by SMEs
Threat face by SMEs in increasing global environment:
Compliance Threat: It is based on corporative governance, law, regulations, politics etc.
On the new market structure there is always a threat related to lack of regulatory certainty
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