Tapping into New and International Markets

Tapping into New and
International Markets

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
LO1..................................................................................................................................................1
P1: Global Business Environment...............................................................................................1
P2: Threat and Opportunities.......................................................................................................2
LO2..................................................................................................................................................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
LO3..................................................................................................................................................6
P5 Determine the advantages and disadvantages of importing and exporting and how to secure
a deal............................................................................................................................................6
P6 Explain the differences between merchandise and service imports and exports....................7
LO4..................................................................................................................................................8
P7 Different methods SMEs can follow to come into international market................................8
P8 Mention difference between methods discussed for SMEs to enter international market.....9
REFERENCES..............................................................................................................................12

INTRODUCTION
In today's international environment, almost all businesses and organizations want to
expand their business operations within international market. Currently the latest technology is
most supportive aspect to the businesses which help in enter the new market. New technology
has reduced many barriers within various industries, it is the main reason behind last statement.
Nowadays, there are great opportunities available to the companies for achieving effective profit
by expanding their operations in global market. This report will discuss various aspects of
international or global market for SMEs. There are different opportunities and threats of global
market which will also be discussed in this report. These opportunities and threats will impact
small businesses in both terms i.e. positively and negatively when they enter the global market.
The various Advantages and disadvantages of exporting and importing will also be included in
this report. There are various methods available to SMEs which helpful in tap into global market.
LO1
P1: Global Business Environment
The United Kingdom is chosen country under Europe region to analyse the international
environment in which SMEs operates.
United Kingdom: United Kingdom is one of the richest country in European continent. There
are great growth opportunities available to all type of businesses in this country. Mainly retail
and food & beverage industries has taken the largest market share within UK. So, SMEs which
based on these both industries gain high profit in the comparison of other businesses (Arnold and
Fischer, 2019). Most people are literate in this country and ready to pay any cost for buying
quality products. In this case, businesses need to provide quality products to customers for
gaining huge profit within UK's market.
In the Global market, UK is very favourable country to many MNCs, because
international businesses are running their operations in this country for the last many years.
These MNCs gained huge profit also in this market. Currently there are approx 5.8 million SMEs
running their operations in this country. These businesses provided great employment
opportunities also to people within the United Kingdom. All SMEs need to follow some business
laws also in this country. The UK government created many rules and regulations for small
business operations. A businessperson always need to implement these rules and regulations
within their operations. Otherwise, government will impose penalty and fine on business. Local
1

government has taken many steps for developing small businesses, like; debt relaxation,
insurance facilities, loans on low interest rates, etc. Most businesses taking huge advantages from
these steps. There are political, economic, social, technological, legal, and environmental factors
of this country highly influencing small businesses in both term positively and negatively.
The government providing both importing and exporting facilities to all businesses. Each
organization need to fulfil some paper work formalities to take advantages from these facilities
(Hanohov and Baldacchino, 2018). All SMEs responsible to register their business for PAYE
and VAT to smoothly run operations in this country. The UK's government is too supportive for
the small businesses, because these are giving great contribution in increase GDP. Technological
factors here too favourable to all small firms, because with the help of these factors each firm
able to increase their performance in the market. In this country, there are many opportunities to
SMEs to expand their operations in other European countries. The main reason behind last
statement is, UK offers effective relaxation to those small firms which want to export something
in other countries.
P2: Threat and Opportunities
SMEs faces many opportunities and threats during enter the global market. These all
opportunities and threats are discusses below;
Opportunities
 Increase Market Share: SMEs are able to increase their market share with the help of
global market. Global market give opportunities to all businesses to sale their products
and services worldwide. In this case, A business need to develop high quality products
for gaining huge competitive advantages in the international market (Sahaf, 2019). Many
of SMEs are currently taking various steps to expand their business globally. Each small
firm is able to take effective advantage from this opportunity.
 Use of New Technology: Small businesses has opportunity to use new technology as
well. A firm is able to take great technological advantages by expanding their operations
in global market. Suppose a UK based small firm expanded their operations in the
Germany. In this case, that firm able to use German technology also with English
technology. A business enable to improve its all over performance through this
opportunity. This is the main advantage of this opportunity.
Threats
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