International Market Expansion: Opportunities and Threats for SMEs
VerifiedAdded on 2023/01/16
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AI Summary
This report examines the international market expansion for Small and Medium Enterprises (SMEs), focusing on the United Kingdom as a case study within the European region. It begins with an introduction to international trading and the rationale for SMEs to expand globally, emphasizing the potential for growth. The report provides an analysis of the global business environment, identifying both opportunities such as government support and low operational costs, and threats including competition and low brand awareness. It explores various ways for SMEs to enter the international market, including exporting and highlights the impact of trading blocs, agreements, tariff, and non-tariff barriers on SMEs' ability to trade. The conclusion summarizes the key findings, emphasizing the importance of understanding the global environment for successful international trade.

Tapping into New and International
Markets
LO 1 and LO2
Markets
LO 1 and LO2
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Table of content
Introduction
Introduction to the chosen country and region
An analysis of the global business environment
Threat and opportunity faced by SME
Rationale for SMEs to expand their business internationally
Ways to enter in International business environment
International opportunities for SMEs
Conclusion
References
Introduction
Introduction to the chosen country and region
An analysis of the global business environment
Threat and opportunity faced by SME
Rationale for SMEs to expand their business internationally
Ways to enter in International business environment
International opportunities for SMEs
Conclusion
References

Introduction
Trading overseas refers to the activity by which goods as
well as services are transported from one country to the
other which are miles apart and separated from one's
territory by the sea. It helps the company to exploit the
opportunity by effectively tapping into new international
market and cover the area successfully in order to enhance
growth and development opportunity. Trading usually
involve the import as well as export practices in order to
accommodate the needs of potential market effectively.
Trading overseas refers to the activity by which goods as
well as services are transported from one country to the
other which are miles apart and separated from one's
territory by the sea. It helps the company to exploit the
opportunity by effectively tapping into new international
market and cover the area successfully in order to enhance
growth and development opportunity. Trading usually
involve the import as well as export practices in order to
accommodate the needs of potential market effectively.
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Introduction to the chosen country and
region
Barclays organization has selected the United Kingdom region
where it identity the opportunity as well as threat in order to
carry out the functioning of small businesses. UK is the part of
Europe region that is the civilized country and is sixth largest
economy that promote the small and medium business in order
to maintain the enhanced living standard of people.
region
Barclays organization has selected the United Kingdom region
where it identity the opportunity as well as threat in order to
carry out the functioning of small businesses. UK is the part of
Europe region that is the civilized country and is sixth largest
economy that promote the small and medium business in order
to maintain the enhanced living standard of people.
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An analysis of the global business
environment
Global business environment involve the the diverse external
factors or condition which can affect the operation of firm and
influence to make the significant decision in terms of
resources as well as capabilities. Based on the external
condition of the particular region like United Kingdom firm
need to take effective decision in terms of the opportunity
based on which business are diversifies to carry out successful
overseas trading.
environment
Global business environment involve the the diverse external
factors or condition which can affect the operation of firm and
influence to make the significant decision in terms of
resources as well as capabilities. Based on the external
condition of the particular region like United Kingdom firm
need to take effective decision in terms of the opportunity
based on which business are diversifies to carry out successful
overseas trading.

Threat and opportunity faced by
SMEs in the global environment
Opportunity: The government as well as local authorities
immensely provide the start up and new venture based on the
innovative idea as it helps in the wide circulation of funds
within an economy. Along with that their exist wide credit
extension financial institution that acts as a strength for
company. Some of the opportunities are illustrated below:
• Gain high contribution from domestic market due to
location wise mobility
• Low operation expenditure and availability of wide
investors
SMEs in the global environment
Opportunity: The government as well as local authorities
immensely provide the start up and new venture based on the
innovative idea as it helps in the wide circulation of funds
within an economy. Along with that their exist wide credit
extension financial institution that acts as a strength for
company. Some of the opportunities are illustrated below:
• Gain high contribution from domestic market due to
location wise mobility
• Low operation expenditure and availability of wide
investors
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Threat: Due to the wide presence of national and international
industries starts can face certain challenges that are illustrated
below:
• Dumping from developed nation
• Low brand awareness in comparison to multinational
• Poor or low incentive structure for entrepreneur
Threat: Due to the wide presence of national and international
industries starts can face certain challenges that are illustrated
below:
• Dumping from developed nation
• Low brand awareness in comparison to multinational
• Poor or low incentive structure for entrepreneur
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Rationale for SMEs to expand their
business internationally
Generally the SMEs even if gain the success within
home market less likely expand the business within
international market because they have usually does not
have the advantage of economies of scale. Significantly
these firm have the potential to operate in the global
market where government offer the subsidies in order
to waive off the immense pressure of duties on
company.
business internationally
Generally the SMEs even if gain the success within
home market less likely expand the business within
international market because they have usually does not
have the advantage of economies of scale. Significantly
these firm have the potential to operate in the global
market where government offer the subsidies in order
to waive off the immense pressure of duties on
company.

Ways to enter in international
business environment
Exporting: It is the trading activity under which after
strengthening the operations within home country
the small or medium business expand their
operation outside their boundaries. Application of
such expansion technique helps in portfolio
investment due to which chances of profitability
increases and risk gets mitigated.
24/12/19
business environment
Exporting: It is the trading activity under which after
strengthening the operations within home country
the small or medium business expand their
operation outside their boundaries. Application of
such expansion technique helps in portfolio
investment due to which chances of profitability
increases and risk gets mitigated.
24/12/19
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International opportunities for
SMEs
SMEs basically involve the companies that carry out the
operations within the confined geographical area to carter
the needs of the local resident who are in proximity. They
the limited manpower or capital that restrict the growth of
company which is the major challenge of company. Along
with that they usually faces the issue of high turnover rate
because most of the staff are less reluctant to work in small
organization in comparison to large company.
SMEs
SMEs basically involve the companies that carry out the
operations within the confined geographical area to carter
the needs of the local resident who are in proximity. They
the limited manpower or capital that restrict the growth of
company which is the major challenge of company. Along
with that they usually faces the issue of high turnover rate
because most of the staff are less reluctant to work in small
organization in comparison to large company.
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Trading blocs and agreements
Trade blocs and agreement offer various advantage
to the SMEs like application of such contract
encompasses the free flow of agreement that
facilitate the organization to enhance the economy
significantly. This assist the company to carry out
the trade practices without paying the taxes to the
area that have agreed upon the particular
condition. Based on this small business can freely
operate their performance.
Trade blocs and agreement offer various advantage
to the SMEs like application of such contract
encompasses the free flow of agreement that
facilitate the organization to enhance the economy
significantly. This assist the company to carry out
the trade practices without paying the taxes to the
area that have agreed upon the particular
condition. Based on this small business can freely
operate their performance.

Tariff and non-tariff barriers
Tariff barriers refer to the duties that needs to be
paid by business in order to expand their operations
overseas. These import duties are either charges to
enhance the prices of commodities and restrict the
quantity. Imposition of such duties safeguard the
interest of domestic industries and retain the interest
of audience. These act as a barrier for SMEs because
they need to pay high taxes which minimise the
profitability margin.
Tariff barriers refer to the duties that needs to be
paid by business in order to expand their operations
overseas. These import duties are either charges to
enhance the prices of commodities and restrict the
quantity. Imposition of such duties safeguard the
interest of domestic industries and retain the interest
of audience. These act as a barrier for SMEs because
they need to pay high taxes which minimise the
profitability margin.
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