Report: Analyzing UK Business in International Markets and Expansion

This report analyzes the UK's business environment within the context of international markets. It begins with an introduction to the UK's economic landscape, emphasizing the role of SMEs and the impact of global drivers. The report then delves into the rationale for SMEs expanding internationally, outlining opportunities and challenges, and exploring strategies for overcoming barriers to global growth. It examines trading blocs, agreements, and their advantages, along with tariff and non-tariff barriers in international trade. The report also discusses how trading blocs stimulate global growth for SMEs, and concludes with a summary of key findings. The report covers topics such as the impact of Brexit, investment opportunities, technological advancements, and the importance of a skilled workforce, providing a comprehensive overview of the UK's international business environment.

Unit 43:
Tapping into New and
International Markets

Table of Contents
INTRODUCTION...........................................................................................................................1
PART 1............................................................................................................................................1
Introduction to UK along with its global environment...............................................................1
Analysis of global business environment and influence of key global drivers on UK...............2
Rationale for SMEs to expand their business internationally.....................................................3
SMEs take advantage of international opportunities and overcome barriers for global growth.3
Trading blocs and agreements and advantages...........................................................................4
Various tariff and non-tariff barriers that exist in international trading environment................5
How international trading blocs and agreements stimulate and generate global growth for
SMEs...........................................................................................................................................5
PART 2............................................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
In today's modern era, the organisations operating as a part of an economy aim at
carrying out expansion of their business operations within a number of countries apart from
domestic country. By making entry into a variety of international markets, a firm seeks to attain
growth and development in due course of time. This enables a firm to inflate its existent scale of
business functioning. In this relation, there are a number of methods which are put to use in a bid
to carry out expansion of market operations of a company. This aids the organisations in
appealing to a larger base of customers, thereby facilitating increment in revenues along with
profits.
The aim of preparing this report is to design a webpage for Barclays PLC, a renowned
multinational financial institution that is engaged in investment and other financial services. The
following project explores global business environment together with impact of key global
drivers. Besides this, it constitutes opportunities and challenges linked to global business
environment. Further, the report consists of merits of non tariff and tariff barriers together with
merits of global trading blocs. Additionally, the project also deals with benefits and
shortcomings of importing & exporting, distinction between merchandise and service exports
and imports, and ways to gain access into a variety of global countries.
PART 1
Introduction to UK along with its global environment
UK is selected as the nation for this analysis as it is recognised that a large number of
small and medium scale organisations pertain to this national economy. This is a prosperous and
constantly evolving nation which belongs to the continent named Europe. As per the reports of
2019, it is seen that this nation stands at 6th position within the largest economies of world in
terms of nominal Gross Domestic Product (GDP). The developed state of this economy enables
the growth and sustainability of large number of small and medium sized enterprises (SMEs).
Being a well developed market for commercial purpose, UK tends to serve as a lucrative place
for entrepreneurs to setup SMEs and thereby, enhance their standard of living with the passage of
time. In this relation, it is witnessed that local authorities of Britain give subsidy to these entities
with a view to promote the growth and development of SMEs within the confines of respective
country. With this assistance, such entities are able to procure the essential resources from
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market and thus conduct services through which they can gain the attention of large number of
persons. When a large number of SMEs execute their operations within the peripheral boundaries
of United Kingdom, the economy gets a massive boost and the overall contribution to global
GDP inflates as a whole.
Further, the analysis of global business environment of this country stipulates that the
political state of UK is stable. This implies that the governmental regulations as well as policies
remain constant on an yearly basis. This provides aid to the small firms in leveraging their
comprehensive knowledge of the British laws as well as regulations to gain high stake in market
place. At present, these organisations employ a total of approximately 16.3 million individuals,
thereby giving their contribution to 60% of overall jobs within the confines of United Kingdom.
Small businesses in this place are effectual in terms of providing aid to local economy. They
exhibit innovation in the territory enabling equal dispersal of income as well as heable to cover
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The significance and contribution of SMEs in United Kingdom can also be acknowledged
with the help of a political unrest state named BREXIT. Small and medium scale businesses
largely contributed to bring the nation out of unstable political conditions. They indulge in flow
of money so that the economy can deal with the adversities in an effective manner and regain the
old state. This signifies that entrepreneurial and small businesses play a crucial role in the
upliftment of Britain's economy.
Analysis of global business environment and influence of key global drivers on UK
Global business environment can be defined as the environment pertaining to sovereign
nations, with aspects that are exogenous to domestic territory of the company, which holds
impact over the decisions associated with capitalising on capabilities and resources. This consists
of a wide variety of external factors that place a significant influence on the business operations
of entities. In this regard, it can be analysed that it is important for corporations pertaining to UK
to take key decisions of business as per the global business environment of location. Within the
peripheral boundaries of Britain, small business enterprises give substantial contribution, thereby
constituting approximately 11 million pounds of revenue. Similarly, medium scale organisation
tend to yield revenue of 50 million pound.
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By getting assistance from an array of institutions and globalisation, small and medium
term business enterprises functioning within the periphery of United Kingdom are able to give
their participation in trade. This tends to imply lower tariff restrictions, thus leading to smooth
flow of products and services. Regardless of the consistent governmental regulations and policies
within the nation, UK is seen to encounter market dynamics. One of the most significant and
relevant examples of these can be seen in terms of British exit from EU (BREXIT). This
significantly affected the trade activities of companies within or outside UK. After the execution
of this phenomenon, tariff along with interest rates are charged from companies, making them
hesitate from participating in trade activities at the same rate as before BREXIT. The key global
drivers which impact over the operations of SMEs in UK are acknowledged to be investment
opportunities, technological progression and knowledgeable workforce.
Rationale for SMEs to expand their business internationally
There are many reasons behind SMEs aiming to expand in an array of foreign markets.
The foremost reason behind the intent to facilitate expansion at global level is the increment in
volume of sales. Further, it is seen that foreign countries are a storehouse of new technologies
and systems. This provides small and medium sized organisations with the scope to enable
savings of cost. In this regard, it can be said that small firms usually consider to setup their
manufacturing plants within the confines of China so as to enjoy the opportunity of accessing
cheap land as well as labour. Further, another reason why SMEs aim at carrying out expansion of
business operations is capitalising upon economies of scale. By leveraging comprehensive
knowledge of market demands and preferences, smaller firms gain an upper hand at market
place. Exploring international opportunities may seem to be risky for small and medium scale
entities but it is worth investing time, money and efforts in.
SMEs take advantage of international opportunities and overcome barriers for global growth
There are numerous opportunities and challenges linked to facilitation of growth of
business at international level. In this regard, it is seen that when corporations seek to enter a
range of foreign markets, their overall cost of operations tend to rise. To deal with this, the
opportunity that can be leveraged by SMEs is making use of a global strategy and with its
assistance, inflating their existent sales volume. The rise in volume of sales helps the
organisations to deal with the enhanced cost of business operations. Another challenge
encountered by small and medium business enterprises at the time of gaining global growth is
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excessive rivalry. To tackle this in an effective manner, SMEs can leverage the opportunity of
coming up with innovative and market disruptive offerings at rapid intervals of time. Through
this, the firms are able to gain the attention of a large number of persons, thereby persuading
them to make a purchase. This ensures the entailment of competitive edge over rival firms
prevailing at market place. In this regard, another crucial challenge that is encountered by SMEs
at the time of tapping into new and international markets is the consideration of consumer norms
and values pertaining to foreign countries. This challenge can be dealt by executing regular
research on market. This enables the firms to get acquainted with the preferences and tastes of
people so as to provide offerings that are compatible with their demands. Thus, it can be said that
SMEs take advantage of international opportunities to overcome barriers associated with global
growth.
Trading blocs and agreements and advantages
Trading blocs can be referred to as the formal type of agreements which are devised with
a view to expel trade obstructions between at least two territories and nations. Some of the
examples of trading blocs and agreements of UK are CARIFORUM trade bloc, Eastern and
Southern Africa (ESA) trade bloc, Southern Africa Customs Union and Mozambique (SACUM)
trade bloc etc. Some points of merits of these agreements are given underneath in a detailed
manner:-
Inflate economic development – Owing to trade blocs and agreements, association
would have the option to enhance the growth of economy. This would provide assistance to
entities in conducting commercial practices in a successful and effectual way.
Technology transfer – Trading alliances and agreements tend to give unique and
innovative techniques to business associations. Hereby, as a result of free commerce, modern
innovations and techniques would be transmitted from one place to another in quite a quick
manner.
Improvement of exchange – Reduction in terms of exchange limitations and strategies
would tend to prompt improvements in exchanging capacity of association. Exchange coalitions
strive to provide help to companies in executing the practices of business within the confines of
different nations across the globe.
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Various tariff and non-tariff barriers that exist in international trading environment
A number of barriers are encountered by companies while performing trade activities on
a global scale. These barriers are:-
Tariff barriers
Transit duties – This can be referred to as the taxation which is charged by
governmental authorities on products transmitted from one location to another. This is regarded
as one of the biggest barriers that are faced by organisations while operating in global trade
environment.
Specific duty – This can be referred to as a barrier that affects the sale and profitability
of company. This is charged by governmental authorities and tends to raise the overall cost for
business.
Non tariff barriers
Import policy barriers – These can be classified as non tariff barriers and tend to affect
the business performance in a negative manner. In this relation, it becomes crucial for companies
to tackle these barriers so as to effectively carry out importing of commodities.
Service barriers – These encompass the various types of barriers that are placed by
governmental authorities over product and service distribution across the international
boundaries.
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How international trading blocs and agreements stimulate and generate global growth for SMEs
Trading blocs reduce unnecessary restriction on trade affairs by making uniform policies
for the nation. Owing to Brexit, UK has signed agreement with various countries in relation to
trade practices. CARIFORUM-UK economic partnership agreement is a trading bloc that helps
SMEs to trade in Barbados and Bahamas and execute the option to trade freely. These
agreements facilitate growth of global economies by enabling SMEs to trade significantly. It
executes growth by covering vast global area through management of imports and exports of
overseas trading. This results in a situation of high profitability.
PART 2
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CONCLUSION
On the basis of above discussion, it can be inferred that growth is important for each and
every corporation which operates as a part of the economy, irrespective of its size. In this
relation, it has been identified that the best way to attain growth is by gaining access into new
and international markets. This provides assistance to firms in inflating their scale of operations
as well as the incomes gained by them. Furthermore, it is recognised that the global business
environment in which an enterprise carries out its operations, has major influence over the
performance and decisions of association. Additionally, it is acknowledged that trading blocs and
agreements are of crucial importance for small and medium enterprises. They assist in reducing
trade restrictions and facilitate free trade for execution of business operations at global scale.
There are several methods by which SMEs can gain entry into new and international markets. All
such methods have their own pros and cons which need to be evaluated by firms before opting
one out of the available options.
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REFERENCES
Books and Journals
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firms in the context of demographic challenges. International Journal of Globalisation
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Lin, F.J. and Ho, C.W., 2019. The knowledge of entry mode decision for small and medium
enterprises. Journal of Innovation & Knowledge, 4(1), pp.32-37.
Rottig, D. and de Oliveira, R.T., 2019. International expansion of Chinese emerging market
multinational corporations to developed markets: a qualitative analysis of post-
acquisition and integration strategies. In Chinese Acquisitions in Developed
Countries (pp. 37-53). Springer, Cham.
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Mostafiz, M.I., Sambasivan, M. and Goh, S.K., 2019. The antecedents and the outcomes of
foreign market knowledge accumulation–the dynamic managerial capability
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Saghebi, S., Alizadeh, A., Mohammadzaheri, M. and Habibisenobari, T., 2019. Relationships of
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Tobing, M., Sya’ad Afifuddin, R., Huber, S.R., Pandiangan, S.M.T. and Muda, I., 2019. An
Analysis on the Factors Which Influence the Earnings of Micro and Small Business:
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Sundet, V.S., 2019. From ‘secret’online teen drama to international cult phenomenon: The global
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Wulansari, P. and Fernando, Y., 2019. Developing Global Supply Chain Manager for Business
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(Sundet, 2019)(Tang, 2019)(Kogut, de Mello and da Rocha, 2019)(Wu and Park, 2019)(Tobing
and et. al., 2019)(Mostafiz, Sambasivan and Goh, 2019)(Saghebi and et. al., 2019)(Ooi,
and Richardson, 2019)(Rottig and de Oliveira, 2019)(Lin, and Ho, 2019)(Leick, 2019)
(Viswanathan and Jha, 2019)(Fatehi and Choi, 2019)(Ibeh, Crick and Etemad, 2019)
(Zhao, Kang and Kennedy, 2019)(Wulansari and Fernando, 2019)(Hurwitz and et. al.,
2019)
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