Analyzing International Markets: A Barclays SME Perspective Report

This report provides an in-depth analysis of the international market environment, focusing on the opportunities and threats faced by Small and Medium Enterprises (SMEs), with Barclays as a case study. The report explores the international business environment, particularly in the context of the United Kingdom and Europe, examining the impact of global economic changes, such as Brexit, on business operations. It analyzes the advantages of international trading blocs and agreements, such as the CARIFORUM-UK and ACUM-UK economic partnership agreements, and their effects on global growth for SMEs. The report also discusses the barriers that impact the operations of organizations, including tariff and non-tariff barriers, and their effects on the development and growth of SMEs. The report highlights the importance of understanding global key drivers, such as labor regulations and productivity, and how they influence the business environment. The conclusion summarizes the key findings, emphasizing the impact of government policies, trade agreements, and barriers on international business and free trade.

Tapping into New and
International Markets

Table of Contents
INTRODUCTION...........................................................................................................................3
PART 1............................................................................................................................................3
P1 Explanation about international business environment in which SME operate their business
.....................................................................................................................................................3
P2 To analyse threats and opportunities which are faced by SME in competitive business
environment.................................................................................................................................4
P3 Advantages of international trading blocs and agreements...................................................5
P4 Barriers that impacts on operations of an organisation..........................................................6
PART 2............................................................................................................................................7
Covered in brochure....................................................................................................................7
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Trading overseas can be defined as a practice to enter into an untapped market with an
aim of developing and growing the enterprise operations at global level. The concept of
international market demonstrate those efforts that are developed by organisation for importing
and exporting products across international borders. The main motive of this report is to interpret
international market situations to analyse upcoming opportunities and threats in market. The
existing report is composed from point view of Barclays which is performing financial
operations with aim of becoming top leading finance company in market as well as industry
(Fang, 2016). Moreover, this report highlights on contents of webpage and selected country for
this report is United Kingdom and the analyse of SME is done from perspective of Europe
region. In the last, this report highlights on global business environment of UK along with their
threats and opportunities for analysing the benefits of international business.
PART 1
P1 Explanation about international business environment in which SME operate their business
Europe is one of the developed country among all over the world but as per existing
market conditions due to global economic changes such as turmoil, brexit etc. are impacting on
business and its operations. The government and top authorities of organisation in context of UK
are open for adopting new business due to flexible policies, procedures and framework are
formulated for SME. This results new business perform their operations in effective manner as
per rules and regulations of country due to which it work as backbone for country. This refers
small business enhances GDP of country and also generates more employment in country. So
with private sector current economy of country is at six place. It results UK economy is one of
financial centre among all over the world with the support of SME as it enhances production as
well as services for UK residents which increases monetary flow in country.
SME refers to those organisation which are operating their business at medium and small
level due to which its operations are performed in few regions. From the perspective of UK,
small business refers to those companies which employed maximum 50 employees with a
turnover of 10 million pounds (Guimón, 2011). Similarly, medium organisation consider 250
employees for performing their operations that assist them to generate and manage a turnover of
50 million pounds. In the present scenario, most of the companies are focused towards enhancing

their business operations at international level. This governs company is manufacturing their
goods at small level but mostly resources are imported from other countries. On the other side,
finished and manufactured products are also exported to other regions and countries. In context
of specific data entire business population the government of UK defrayal 1 pound on 3 every
pounds for business (UK’s global business environment, 2011). Most of the SMEs that are
operating their business in UK perform their business in global environment but in boundaries of
Europe only but to export of products in Spain, France etc. most of the operations are performed
at minimum rate because of European Union and negotiable government policy for SME such as
no tax policy and many more (Jensen and Pedersen, 2012). SME in United Kingdom enhances
their business environment to outset their operations in market of Asia and Africa as this
countries are developing. So it provides opportunities for business to enhance their profits as
well as to contribute in GDP of UK.
P2 To analyse threats and opportunities which are faced by SME in competitive business
environment
Global key drivers and its influence- Due to the changes in external business
environment there are various impacts are monitored in business. Brexit is one of the best
example that demonstrate major changes in SME policy. This governs before Brexit it is easy to
trade freely in other countries of Europe but after implement of Brexit policy SME as well as
entrepreneurs must pay reasonable tax and exchanges rates. Along with the global key drivers
refers towards UK demonstrate labour force, place, investment and productivity due to which
economy of nation is directly impacted. Like labour regulations decides high rates or wages for
UK residents due to which SME are focused towards recruiting labour from Asian countries as it
allows to perform their operations at minimum rate and work as positive influence for company.
On the other side, other global drivers refers to productivity and investment directly impact and
influence industrial growth of UK.
Explanation for SMEs to enlarge their enterprise at worldwide level
SME of the UK intend to increase or expand the business at international level as it
increases sales revenue by inflating to target market. Another rational for SME is to expand
business at international level by increasing more value in products through increasing skills of
employees by organising proper training and development workshops for employees (LiPuma,
2012).

Opportunities and threats in global business environment
Small scale business are performing their work in the global business environment due to
which it is mandatory for Barclays to manage their operations for long term in company. SME
are small in staff so it is complex for management to compete with large organisation. The major
challenges relates with organisation are lack of financial resources, unskilled labour, ineffective
research and development division. This results overall productivity and profitability of
organisation is impacted as it restrict SME to perform their operations at global level because
individuals demands products in bulk. On the other due to low staff competition instability and
inability is also seen in management that compete to against large firms.
Along with this the mention challenges refers to those opportunities that are enjoyed by
SME (Mahajan, 2012). In context of UK, government also initiate different policies for SME
that is used to operate business with low tax and also to get tax at get loans within discounted
rates. This also helps individuals to trade without facing customs that helps to increase business
at international level.
P3 Advantages of international trading blocs and agreements
Trading blocs states as an international government agreement that focuses to reduce the
restriction and limitations among different nations that is related with eliminated for participating
states. Further, trading blocs and agreements refers to those contracts that are done in nation for
allowing better participation between different states for trading freely with each other to
facilitate industrialisation and developing better economy in world.
Trade blocs refers to those agreement which are facilitate by business for a particular
region without payment of tax. United Kingdom is also the member of European Union that
allow enterprise of UK to trade freely in European state. But after apply of Brexit, UK decided to
sign different agreements that allow them to connect with rest of world. CARIFORUM-UK
economic partnership agreement is an example that is used to trade with rest of world. As per
this agreement it helps to trade freely with other nations such as Bahamas, Barbados etc.
ACUM-UK economic partnership agreement- EPA is the another trade agreement that
is implemented and it is also followed by UK government (Maitra and Maitra, 2015). From the
perspective of trade bloc, business houses of UK is able to trade flexibly with the Africa
specifically southern nations. Along with this countries which are situated in Southern Africa are

high in natural components so with the mention agreement it is easy to import natural products
with no tax commission that results to perform operations at low cost.
After the implementation of Brexit, United Kingdom must perform their operations and
regulations according to policies of WTO (World Trade Organisation) as it is one of the most
essential platform that leads to trade between all countries and also work as a platform to resolve
various conflicts that are related with trade policies of organisation.
Stimulation of global growth for SMEs
The term international blocs and agreements affect global growth for SME as through
trading from perspective of free trade and agreement it is analysed that small business houses
perform import and export activities at large level from foreign countries (Payne, 2016). The
major benefits for foreign countries refers to trade by paying less amount and tax policy that
results to reduce expenses and leads management to earn high profits by enhancing margin for
organisation.
P4 Barriers that impacts on operations of an organisation
Global or multi-national business environment works as the combination for trading
effectively in surroundings area of business. This results it is easy for all nations to trade with
each other with quick approach. Tariff and non tariff barrier are some aspects that restrict
business operations due to which goals and objectives of business are not accomplished
accurately. Tariff barrier imposed with aim of earning revenue by making custom duty, interest
rate. Non-tariff barrier imposed with aim for limiting export and import by specific kind of
products.
Tariff barrier refers to those restriction that limits business for trading from exporting
products. This barrier undertakes the levying a tariff that impacts on goods before allowing them
to enter into specific region. Some major tariff barrier that are related with international trading
environment restrict business to trade as heavy tax and interest rate impact on business and their
operations. Price, licensing and franchising rules etc. are some major barrier that relates with
tariff barrier. On other side, custom and tax rate are major barrier that is paid by SME for
trading.
Some major tariff barrier are mention above, similarly some non-tariff barrier also restrict
business to perform their work in international market. Further, this barrier are not related with
monetary policy, interest and revenue but it relates with management, administrative, rules and

regulations. This results it impact majorly on packing, labelling and deliver of products. Due to
which subsidies of business face major issue such as less demand of products. It refers it is
complex for organisation to make accurate results.
Development and growth of SME is impacted because of tariff and non-tariff barriers as
it generates a gap between actual and expected results for organisation. Despite from the barrier
the mention restriction also develops organise and discipline in context of industrialisation and
their business (Stiglitz, 2014). This barrier also ensure that each and every country is performing
their work ethically in organisation. This barrier ensure that every nation must perform their
work as per restricting so whole operations and functions are performed within ethical manner.
The major reason to implement this barrier is to maintain stability in business. Employment law,
import and licensing, over-valued price are major reasons which is impacting on business and its
operations due to which goals and objectives are not achieved within decided time period.
PART 2
Covered in brochure

CONCLUSION
In the end by the above report it is monitored and concluded that there are various rules
and regulations are related with global business. This all also impacts on free trade within a
business that refuse business performance and its impact on trade policy due to which it is
complex to perform work as per agreements and blocs. It is also monitored in United Kingdom
that government is adopting new business ideas by participating into several agreements that
facilitate business to trade with other nations without paying tax. Along with this it is also
concluded that there are two major trade barrier which are tariff and non-tariff due to which
international business are impacted.

REFERENCES
Books and Journals
Fang, E.S., 2016. Three decades of “repackaging” Islamic finance in international
markets. Journal of Islamic Marketing.
Guimón, J., 2011. Policies to benefit from the globalization of corporate R&D: An exploratory
study for EU countries. Technovation. 31(2-3). pp.77-86.
Jensen, P. D. Ø. and Pedersen, T., 2012. Offshoring and international competitiveness:
Antecedents of offshoring advanced tasks. Journal of the Academy of Marketing Science.
40(2). pp.313-328.
LiPuma, J. A., 2012. Internationalization and the IPO performance of new ventures. Journal of
Business Research. 65(7). pp.914-921.
Mahajan, V., 2012. The Arab World Unbound: Tapping into the Power of 350 Million
Consumers. John Wiley & Sons.
Maitra, S. and Maitra, S., 2015. Tapping into the ‘standing-reserve’: a comparative analysis of
workers’ training programmes in Kolkata and Toronto. Studies in continuing education.
37(3). pp.317-332.
Payne, A., 2016. Inspiration sources for Australian fast fashion design: tapping into consumer
desire. Journal of Fashion Marketing and Management.
Stiglitz, J. E., 2014. Tapping the brakes: Are less active markets safer and better for the
economy?.
Online
UK trade agreements. 2019. [Online]. Available through: <https://www.gov.uk/guidance/uk-
trade-agreements-with-non-eu-countries-in-a-no-deal-brexit>
UK’s global business environment. 2011. [Online]. Available through:
<https://ccbjournal.com/articles/uk-business-environment-positive-and-forward-
looking>Cantwell, J., 2013. Multinational corporations and innovatory activities:
Towards a new, evolutionary approach. In Technological Innovations, Multinational
Corporations and the New International Competitiveness (pp. 33-70). Routledge.