Exploring International Market Opportunities for Businesses

This report provides an overview of tapping into new and international markets, focusing on the global business environment and its impact on small and medium-sized enterprises (SMEs). It examines the opportunities and threats faced by SMEs in an increasingly competitive global landscape, highlighting the importance of international trading blocs and agreements. The report delves into the advantages of such agreements, as well as the challenges posed by tariff and non-tariff barriers. It analyzes the context of the United Kingdom, emphasizing the government's support for SMEs and their role in the economy. The report also discusses the rationale for SMEs to expand internationally, including increasing sales revenue and cost-saving strategies. Furthermore, it explores the dynamics of the global business environment, including the impact of events like Brexit. The report also mentions specific trade agreements like CARIFORUM-UK and SACUM-UK. Overall, the report provides a comprehensive analysis of the key elements of international market expansion for businesses.

Tapping into New and
International Markets

Contents
• INTRODUCTION
• Global business environment in which small and entrepreneurial businesses
operate
• Threats and opportunities that SMEs face in an increasingly competitive
global environment
• Advantages of international trading blocs and agreements
• Tariff and non-tariff barriers
• Conclusion
• References

INTRODUCTION
Trading overseas is a practice of tapping into new and
international market with the aim of growth and development
of the business. This concept is related with the efforts made
by an organisation to export and import products from
international regions. The main aim of this report is to build an
understanding about global environment and various
opportunities or threats which are exposed in that environment.

Global business environment in which
small and entrepreneurial businesses
operate
United Kingdom is a country of Europe region which despite of facing
current global economic turmoil and challenges remains to be a positive,
forward looking and open for business. Government and authorities of
this region are committed to provide facilities to the small businesses as
they think that the small medium businesses are the backbone of the
economy and they must be developed so that they are contribute
towards GDP and employment of the country. United Kingdom is led
forward by its private sector and is a six largest economy of the world.

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SMEs and entrepreneurial organisation of UK operates in a
global environment where they are supported by the government.
SMEs of UK are the total of 98% of the entire business
population due to which UK government aims to spend 1 pound
for every 3 pounds generated by these businesses.

Threats and opportunities that SMEs face in
an increasingly competitive global
environment
Global business environment and the influence of key global drivers:
Global business environment of United Kingdom is dynamic which
changes with the external environmental factors. This environment has
recently faced major changes due to the policies of BREXIT. SMEs of
UK were allowed to freely trade in other countries of Europe without any
restrictions but after the implication of BREXIT policies, SMEs and
entrepreneurial business of UK has to pay a reasonable interest rate and
exchange rates.

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Rationale for SMEs to expand their business
internationally:
SMEs of UK intends to expand their businesses internationally
so that they can increase their sales revenue by inflating their
target market. Another rationale for SMEs to expand their
businesses internationally is to save the cost by procuring cheap
labour from few Asian and African regions.

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Threats and opportunities in competitive global environment:
SMEs are small in staff and turnover due to which they have to
face various challenges while operating in a global environment.
The most influencing challenge which these organisations face is
lack of resources such as finance, skilled labour and market
accessibility due to which management of a small organisation
have to restrict their operation which impacts their overall
productivity and profitability.

Advantages of international trading blocs
and agreements
• CARIFORUM-UK economic partnership agreement
• SACUM-UK economic partnership agreement (EPA).
• World trade organisation (WTO)

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Stimulation of global growth for SMEs
International blocs and agreements stimulate global growth
for the SMEs as by trading under the free trade agreement
small organisation can import or export from foreign
countries by paying less or no taxation which result in low
cost expenses and ultimately lead to higher profit margins
and growth.

Tariff and non-tariff barriers
Tariff trade barriers are the restrictions which limits the businesses to
trade from exporting the products. These barriers include levying a tariff
on goods before allowing their entry in a specific region. There are
various tariff barriers in international trading environment in which
limits businesses to trade due to which they have to pay heavy taxes and
interest rates. These barriers include licensing requirements, price
controls and many more. Custom and taxation rates are the barriers
which has to be paid by the SMEs prior trading.

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Along with above mentioned tariff barriers, there are various
non tariff barriers as well which restricts the businesses to
trade in international market. These trade barriers are not
imposed in order to earn revenues from taxation or interest.
Examples of these barriers includes administrative procedures,
quantity restrictions, procurement rules, product labelling
requirements, subsides and many more.