Consequences of Brexit

This project proposal explores the consequences of Brexit on the economic operations of the United Kingdom and its impact on international business. It discusses the imposition of trade barriers, withdrawal of market access, increased cost of imports, rise in unemployment, and restrictions on movement of people and capital. The proposal also examines the options of a no-deal Brexit and the Norway model. The project is based on the decision of the United Kingdom to leave the European Union.

BREXIT AND ITS RELEVANT CONSEQUENCES
PROJECT PROPOSAL
Name of the Student
Name of the University
Abstract
Dependency on EU
References
No-deal or Norway
model
Pre-Brexit Scenario
Brexit is the quitting of Britain from the European Union (EU).
This decision is still pending because of its adverse impact on the
economic operation of United Kingdom (UK). A majority of the
population supports the Brexit movement due to the strict policies
of EU, such as the Agricultural policy and the Fisheries policy.
However, there is a debate amid accepting the no-deal Brexit and
following the Norway model. The following project is based on the
United Kingdom’s decision of Brexit from the European Union,
and its impact on the international business. The trade operations
of UK consist of imports from the EU’s market. In addition to
this, EU’s single market grabs a major proportion of exports from
UK. Thus, EU helps in generating revenue for UK’s exporting
sector. The no-deal Brexit is the direct exit of UK without signing
of proper documents that harms the free-trade operation. The
Norway model of quitting aims at retaining the access of EU’s
single market but freedom from policies and laws of EU. However,
the major problem of UK is the constant immigration from EU
that possess pressure on the economy. This project presents the
issues and provides evidences of loss from Brexit.
Consequences of Brexit
• Access to EU’s single market, with tariff free trade
(Shapiro, 2014).
• High economic growth and development in the region.
• Greater movement of investments and business
(bankofengland.co.uk., 2019).
• Free movement of people and capital within the area of
the union.
• Subject to the laws prescribed by the Supreme Court of
European Union and threats from immigration.
• Bind by the laws of Common Agricultural Policy (CAP)
• Withdrawal of the access from the market.
• Imposition of tariff and non-tariff barriers in the trade
operations of UK.
• Increasing cost of products and expensive imports from EU.
• Rise in unemployment rate (spectator.co.uk , 2018).
• Restrictions on movement of people and capital between the
two different zones.
• Free from the laws of EU’s Supreme Court, CAP and CFP.
• Restriction on immigration of people.
The no-deal Brexit restricts the free movement of goods and
services between UK and EU. However, there is no limitations
on the access of the market under the Norway model. It will
help in reducing the strictness of laws possessed by EU.
Under the Four Freedom Agreement of Article 112, UK can
restrict the increasing immigration from EU
(bbc.com.news.uk, 2019). This will fulfil the desired aims of
Brexit supporters without harming the trade activities.
bankofengland.co.uk. (2019). [online] Available at:
https://www.bankofengland.co.uk/-/media/boe/files/report/2018/eu-
withdrawal-scenarios-and-monetary-and-financial-stability.pdf?
la=en&hash=B5F6EDCDF90DCC10286FC0BC599D94CAB8735DFB
[Accessed 10 Oct. 2019].
bbc.com.news.uk (2019). Reality Check: What is the Norway model?.
[online] Available at: https://www.bbc.com/news/uk-46024649 [Accessed 10
Oct. 2019].
Shapiro, A., (2014). Multinational Financial Management, 10th edition, John
Wiley & sons, New Jersey. Ch 3.
spectator.co.uk (2018). Collins, D. and Collins, D. Why a no-deal Brexit is
nothing to fear | The Spectator. [online] The Spectator. Available at:
https://www.spectator.co.uk/2018/08/whos-afraid-of-the-wto/ [Accessed 10
Oct. 2019].
Source: ecb.europa.eu, 2019
Source: independent.co.uk, 2017
Source: Hobolt, 2016