Aim of Unit 43: Tapping into new international markets
In the era of globalization, almost every organization tend to extend their business internationally. This situation occurred with the increase of digitalization and usage of digital platforms. Globalization has led in creating entry to the international market at a much easier level. However, despite having such easy ways to entrance an origination may also face certain threats and hindrances.Unit 43 Tapping into new international markets focuses on various techniques that an organization should adopt to face such situations. Globalization has influenced businesses to bring changes and technological advancements. More precisely globalization has united all organizations under one shed to achieve their various goals.
LO1Analyze the opportunities and threats for firms exposed to an increasingly globalized environment
LO2Illustrate the advantages of trading blocs for firms
LO3Determine the importing and exporting process and the practicalities involved
LO4Evaluate ways SMEs can tap into international markets
Analyze the opportunities and threats for firms exposed to an increasingly globalized environment
The global extension has also been adopted by the small medium enterprise sector. They could face threats and competitions in both local and global markets. In order to avoid such threats e-commerce could be used as a mode of globalization. The e commerce sector could be posed with much ease as it opens up various modes of social media communication. In addition to that cyber security should also be maintained and all other rules and regulations have to be taken into consideration before entering into a market.
Illustrate the advantages of trading blocs for firms
International trade could be used and understood under the shed of various international trade theories. Such theories would include country similarity, porter’s strategy, and rivalry strategy. Along with such strategies trade blocks could also be considered while studying the unit. In addition to that advantages of trading blocs could also be read with specially made arrangements and subsidies for Small medium enterprises. The tariffs and trade controls define main advantages of firms by trading blocs.
Determine the importing and exporting process and the practicalities involved
In order to understand the reason for importing and exporting of small medium enterprises their consideration for importing and exporting needs to be focused. Importing and exporting also includes merchandises and services. Apart from that licensing is a very important part to carry out importing and exporting globally. The export import deal security could be determined as one of the processes that are being practiced by Small medium enterprises.
Evaluate ways SMEs can tap into international markets
The small medium enterprises could enter into international market by using various theories like regulations, supports, assessment of markets and distribution. Apart from that channels of transportation also form an important part of the study. Agreements of licensing and franchising are very important to expand business internationally. More importantly creating connections and joint ventures with larger institutions is also important.
Learning Outcomes and Assessment Criteria
|LO1 Analyse the opportunities and threats for firms exposed to an increasingly globalised environment||LO1andLO2 |
D1 Critically evaluate how SMEs are able to take advantage of international opportunities and overcome barriers.
|P1Explain the global business environment in which small and entrepreneurial businesses operate. P2Analyse the threats and opportunities that face SMEs in an increasingly competitive global environment.||M1Provideevidence-based analysis of the global business environment in which small and entrepreneurial businesses operate using specific examples. |
M2 Critically analyse the implications of threats and opportunities that face SMEs in an increasingly competitive global environment.
|LO2 Illustrate the advantages of trading blocs for firms|
|P3 Determine and analyse the advantages of international trading blocs and agreements. |
P4 Explain the various tariff and non-tariff barriers that exist in the international trading environment.
|M3 Evaluate the advantages of international trading blocs and agreements and their implications for SMEs.|
|LO3 Determine the importing and exporting process and the practicalities involved|
|P5Determine the advantages and disadvantages of importing and exporting and how to secure a deal. P6 Explain the differences between merchandise and service imports and exports.||M4 Apply the appropriate import and export process to an organisation and make recommendations on how they could be applied in an international context.||D2 Produce valid and justified recommendations for use of different approaches in an international context.|
|LO4 Evaluate ways SMEs can tap into international markets|
|P7 Evaluate the various methods in which SMEs can tap into international markets. |
P8 Compare and contrast the various ways SMEs can tap into international markets,assessing the pros and cons of each method.
|M5 Evaluate different methods SMEs can use to tap into various markets with application to a small business or entrepreneurial venture,making valid recommendations.||D3 Justify recommendations with supported critical consideration and evaluation of the implementation of different methods.|
This unit links to the following related units:
Unit 19 External Business Environment
Unit29: Managing and Running a Small Business