Background 2 Current scenario in UK: 2 Impact of Brexit on foreign investments: 3 Implications of Brexit on the retail industry of UK: 4 3. Such dissolution implies the rise in trade expenses and as a result, the multinational organisations of the European Union and UK would not enjoy free capital movement across the borders of each other, since their subsidiaries would be subject to strict regulations and increased costs of production (Lockwood et al. For conducting the analysis, the multi-country dynamic general equilibrium model by