Barclays' Report: Tapping into New & International Markets for SMEs

This report examines the expansion of Small and Medium Enterprises (SMEs) into international markets, using the United Kingdom as a case study. It begins with an introduction to international trade and the selection of the UK as a target region, highlighting its economic significance. The report analyzes the global business environment, emphasizing the external factors that influence business decisions, and provides a rationale for SMEs to expand internationally, despite potential challenges like economies of scale. It explores international opportunities for SMEs, including the impact of trading blocs and agreements, and the effects of tariff and non-tariff barriers on market entry and profitability. The report also discusses how trading blocs can stimulate global growth. The conclusion summarizes the key findings, emphasizing the importance of understanding the global environment for successful international trade practices. References to relevant academic sources are included to support the analysis.

Tapping into New and International
Markets
LO 1 and LO2

Table of content
Introduction
Introduction to the chosen country and region
An analysis of the global business environment
Rationale for SMEs to expand their business internationally
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.

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.

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.

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.

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.

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.

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.

Trading blocs stimulate global
growth for SMEs
Trading blocs basically involves the government
agreement that manages the trade between diverse
countries. This help to restrict the unnecessary
restriction as well as limitation in the trade affair
by making uniform policies for the nation. Like,
due to the existence of Brexit UK have signed
agreements with various countries in relation to the
trade practices so that they remain connected with
various countries.

Conclusion
From the above report, it has been analysed that
trading overseas usually involve the import as well
as export practices in order to accommodate the
needs of potential market effectively. It
significantly understand the global or external
environment as business operate in dynamic
environment so it explore the external opportunity
and overcoming the chances of threats.

References
Filippov, S. and Duysters, G., 2011. Competence-
building in foreign subsidiaries: The case of new
EU member states. Journal for East European
Management Studies, pp.286-314.
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.