Unit 43: Tapping into New and International
Markets
Unit code R/508/0603
Unit level 5
Credit value 15
Introduction
In today’s
global environment, organisations are constantly looking at new ways to expand
internationally. With the rise of digital technology and the reduction of
barriers to entry this is easier than ever before, but all organisations must
consider a range of options when making the decision to expand internationally.
In this unit students will explore how organisations are able to move into
international markets, assessing the opportunities and threats of them doing
so. The unit aims to provide students with the key tools and techniques to aid
organisations to evaluate whether they should tap into international markets
and assess the various implications of doing so.
Learning Outcomes and Assessment Criteria
Pass | Merit | Distinction |
LO1 Analyse the opportunities and threats for firms exposed to an increasingly globalised environment | |
P1 Explain the global business environment in which small and entrepreneurial businesses operate. P2 Analyse the threats and opportunities that face SMEs in an increasingly competitive global environment. | M1 Provide evidence- 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. | LO1 and LO2 D1 Critically evaluate how SMEs are able to take advantage of international opportunities and overcome barriers. |
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 | |
P5 Determine 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. |
Pass | Merit | Distinction |
LO4 Evaluate ways SMEs can tap into international markets | D3 Justify recommendations with supported critical consideration and evaluation of the implementation of different methods. |
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. |
Learning
Outcomes
By the end
of this unit a student will be able to:
1. Analyse the opportunities and threats
for firms exposed to an increasingly globalised environment.
2. Illustrate the advantages of trading
blocs for firms.
3. Determine the importing and exporting process
and the practicalities involved.
4. Evaluate ways SMEs can tap into
international markets
Essential
Content
LO1 Analyse
the opportunities and threats for firms exposed to an increasingly globalised
environment
The global
context for small business and entrepreneurship:
·
Global
expansion and opportunities for entrepreneurs and small businesses. Challenges
and threats of globalisation for entrepreneurs and small businesses. Growth of
(local and global) competition.
·
The
rise of the ‘born globals’.
·
E-commerce
as a tool for entrepreneurs and small businesses to go global, including
websites with e-commerce capabilities (e.g. virtual shopping carts, secure
online payments and social media presence).
·
The
application of data protection and Cybersecurity. Recognition of rules and
regulations.
LO2
Illustrate the advantages of trading blocs for firms
Context for
international trade and trade blocs:
·
What
is international trade?
·
International
trade theories: country similarity, product life-cycle, global strategic
rivalry and Porter’s national competitive advantage.
·
Types
of trade blocs and regional trade agreements and their role in facilitating SME
trade.
·
Grants,
subsidies and special arrangement for SMEs. Trade controls and tariffs.
·
Context
for importing and exporting for SMEs.
LO3
Determine the importing and exporting process and the practicalities involved
Rationale for
importing and exporting for SMEs:
·
What
are the considerations when importing and exporting? Securing an import or
export deal.
·
Merchandise
importing and exporting. Service importing and exporting.
·
Licensing.
LO4 Evaluate
ways SMEs can tap into international markets
Methods used to
expand into international markets:
·
Business
planning for expanding into international markets; assessing markets, financial
support, distribution and transportation channels, legal considerations and
international regulations.
·
Licensing
and Franchising agreements. Creating Joint ventures.
·
Establishing
connections and partnerships with larger organisations. Setting up and
establishing outlets/branches abroad.
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