Analysis of Global Market for SME Business Development

This report provides an analysis of the global business environment, focusing on the challenges and opportunities for Small and Medium Enterprises (SMEs) in international markets. It explores the political and technological factors influencing business decisions, emphasizing the importance of analyzing the global environment for SMEs' growth. The report discusses the key drivers for market share growth and addresses the threats and opportunities faced by SMEs, including planning, market adaptation, and the impact of change and business interruptions. It further examines the advantages of international trading blocs, such as free trade areas, custom unions, and common markets, highlighting their benefits for market size and economic leverage. The report also details tariff and non-tariff barriers in international trade, evaluating their implications for SMEs and concluding with the importance of adapting to the global business environment for success.

TAPPING INTO NEW AND
INTERNATIONAL
MARKET

Table of Content
• Introduction
• Explanation of global business environment
• Threats and opportunities faced by SMEs
• Advantages of international trading blocs
• Tariff and non-tariff barriers
• Conclusion
• References

An international market refers to the geographically defined
market which is situated outside international borders of
country. In this report analysis of global environment and it
also examine the challenges and opportunities for the
growth of company in particular region. In addition to this,
it also explains the advantages of trading blocs agreements
with related region and also explain different tariff and non-
tariff hurdles which exist in international market.
Introduction

Global business environment refers to the environment in which various countries and regions include
who influences the decision making of company regarding the use of resources and capabilities. Thus,
it is important for each and every organization to examine the global environment in effective and
appropriate manner which describe the facts and surroundings of region that impacts the growth and
success of company.
Explanation of global business environment

Political Factors: This factor is related with the political condition and stability of country in which
business operates and so it is important to examine it. In addition to this, Europe has a favorable
political condition and environment for the expansion of new and small business organizations as
they provide huge amount of opportunities to small businesses because of its political stability and
progress.
Technological Factors: It is the most important aspect which is considered by each and every
organization as for this, the technological elements are examined such as digitization and
advancement of technology in country.
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By considering the above information, it is analyzed that global business environment is essential to
analyze and examine because it helps in identifying the positive and negative aspects for small
business which are associated with business environment. For this, analysis cover the key drivers
which firm experiences in concern with the expansion in Romania. Thus, various factors are as:
 Growth of market share is the primary key driver which is concerned with the success and growth
of market share and it is possible only when huge amount of market area is acquired by
organizations at global level.
Analysis

Developing business face some sort of challenges and threats in their expansion as it describe that
business face various problems and opportunities as it grows and also need unique and new
solutions for their success and growth which becomes best approach for company. It include
recognition and overcoming the common barriers as after analyzing them as it is concerned with
growth and development of business.
Threats and opportunities faced by SMEs

Opportunities
Planning ahead: It describe that planning is important for achieving growth and success of
business and to achieve the sustainability in competitive business environment then it is
important to do planning in advance which helps in providing insight or vision to managers in
their expansion.
Keeping up with market: It describe that company need to get updated and advanced by analyzing
the changes which take place in the market conditions and also continuously keep analyzing
them.
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Threats
Change: It define the change which arise at the time of operations in business and it can be related
with any change which describe technological, plans and policies, trends and many more.
Business interruption: It can also become threat for company as it describe the involvement or
interruption of business such as threat from existing companies and new ones in market.
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From the above discussion, it is analyzed that in the expansion in international market many small
organizations face threats and they have chance to convert it into opportunities. For this, SMEs
need to critically analyze their threats and opportunities which is useful for them in order to deal
with any change which occur while expansion in global market. Thus, it is determined that planning
and keeping updated can bring more and more opportunities for small organizations meanwhile,
changes and interruption of businesses can become threat for small businesses. But for all this, it is
required that organizations should have efficient leaders and apply suitable leadership for effective
management.
Critical Analysis

Trading blocs defines the grouping of nations or countries that made agreements regarding their
trading among themselves to have barrier free trade deals.
Free trade area: This trade agreement is free from tariff among members and no outside tariff is
involved in it. Thus, the member of country can bargain on their own trading.
Custom union: It depicts the free trade area and the common unified outside tariff as the members
of trade block can easily negotiate with other party for better deal.
Common or single market: This trade block is suitable for elimination of all barriers of trade for
transferring products and services, workers and capital.
Advantages of international trading blocs

Advantages of Trade Blocks and Agreements
Size of market: It describes the enhancement of foreign direct investment which is beneficial for
economy of involving country. It is an overall improvement in scope and size of small businesses.
Economic leverage: This factor allows the production which assists in creation of economic
scale by passing mass production as tends the reduction of cost of production. Therefore, trade
block helps in increasing the economic leverage of the engaging countries of trade agreement.
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