Brexit Deal: Impact on United Kingdom's Business and Economy

This report analyzes the impact of Brexit deal on the United Kingdom's business and economy. It discusses the advantages and disadvantages of leaving the European Union and the effects on trade, labor, and reputation of the country.

INDIVIDUAL REPORT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................2
MAIN BODY..................................................................................................................................2
Analysis of the Brexit deal..........................................................................................................2
CONCLUSION................................................................................................................................5
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INTRODUCTION
Brexit refers to a deal between the United Kingdom and the European Union. The treaty
of United Kingdom leaving the European Union is referred to as the Brexit Deal. After the Brexit
Deal, the opinion of the people across the world towards this decision states the now the United
Kingdom will be free to make their own laws. It is stated that, Earlier, the European Union was
dominating and used to undermine the sovereignty of United Kingdom. However, the present
report will be presenting arguments that discusses both the aspects of the European Union i.e.,
whether the United Kingdom has been benefitted by leaving the European Union or has been
impacted negatively. used to undermine the sovereignty of the United Kingdom.
MAIN BODY
Analysis of the Brexit deal
The Brexit deal i.e., United Kingdom leaving the European Union is a conflicting
situation. There are various people that argues that leaving the European Union has helped the
United Kingdom in regaining their power and authority to make several laws and regulations
within the country. However, it is very difficult and complicated to state whether the United
Kingdom has been benefitted from the deal of Brexit in terms of getting the freedom to make
their own rules and regulations within the country or not (Hix, 2018). The deal of Brexit has
been found helpful to the United Kingdom in certain ways, but on the other hand, it has affected
the country negatively too. Even though, the Britain has left the European Union, but still the
country follows several rules and regulations which were developed by the European Union.
However, now, the United Kingdom has the power to make its own decisions and decide on their
own what is good or bad for the development of their nation.
The major advantages of the Brexit deal with respect to the United Kingdom involves
fewer restrictions from the European Union, enhanced opportunities of growth for the company,
the opportunity to make decisions on their own, the ability to make international trade
agreements without having to take permission from the European Union, recovering from the
fees charged by the EU, less divisions within the society. The exit of Britain from the European
Union has found to be effective in certain ways as it allowed the government of the United
Kingdom to open the doors to different opportunities in front of them. The exit of United
Kingdom from the European Union allowed to the government to develop their own policies
with respect to the rules and regulations operating within the nation, health policies, employment
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and trade policies, educational policies and many more of such policies. It opened the door of
freedom for the United Kingdom to make important business decisions with respect to the
betterment and development of their country and the citizens living within the same. This deal
also helped the government of the country in freeing themselves from the fees of the European
Union charged by them (Bisciari, 2019). The exit of the United Kingdom from the European
Union has also helped the nation from the burden of following the rules and regulations stated by
the European Union which needs to be complied by all the member countries of this Union.
However, since, the United Kingdom is not a part of this treaty anymore, they do not have to
comply to the laws and legal frameworks of the European Union anymore. Earlier, the United
Kingdom had to follow the guidelines of the Union and make sure that they do not any step
which might affect this treaty in any manner, but that is not the case now. At present, the United
Kingdom is free to to make any kind of trade agreements within the country or even outside the
country on their own.
Now, the United Kingdom has the opportunity to make international trade agreements
with those countries which are not a part of the European Union without having to ask from the
European union. Also, the country is free to access the materials that are required within their
nation for the purpose of carrying out several business operations or manufacturing industries
within the country at a price which is best suited for the profitability of the United Kingdom.
Even though, the Brexit deal has opened several doors for the United Kingdom in the
long run, however, the deal has made a negative impact on the business and economy of the
country in the short run (Stoupos, and Kiohos, 2021). As the effect of this deal, the United
Kingdom has suffered various losses in terms of business within the nation. The major
disadvantages of the Brexit deal on the United Kingdom includes tariffs for the British exports,
disruption in the supply chain, decrease in the labour from the European Union, the confidence
of the people within the business organizations belonging to the UK has been lowered, Increase
in the trade barriers for the country, no cooperation from the countries which are a part of the
European Union.
Even though, the United Kingdom has been able to form an agreement with the European
Union in which the European Union states that the United Kingdom is allowed to move their
products freely from their nation to the member countries of the European Union (Bloom, and
et.al 2019). However, the European Union has not completely eliminated the tariffs on the
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products and services moving across these nations, they charge a rate of tariff on certain goods
stated within the Trade Cooperation Agreement, 2021. This has affected the business operations
of the UK and has negatively impacted the economy of the country in the short run. Similarly,
even though the United Kingdom is now free to make its own international trade agreements and
relations with different nations of the world, but making relations with the foreign nations is not
an easy job when the other nations already know that the country has no relations with the
European Union and is in need of developing new relations in order to enhance the economy of
their country (Topliceanu, and Sorcaru, 2019). Earlier, the major business of United Kingdom
was carried out with the member countries of the European Union but due to the Brexit deal, the
United Kingdom, no longer has the right to form relations with the member countries and
therefore, faces huge losses within the business. The action of taking exit from the European
Union has affected the reputation of the United Kingdom which in turn is affecting the available
business organizations within the country. This means that earlier, people from varying countries
used to invest their funds and used to purchase the shares of the companies of United Kingdom
from the London Stock exchange but now the people do not have any confidence within the
business operations of the United Kingdom. This has been a major cause which led to a decline
the economy of the country. Another major concern arises because of the Brexit deal includes
cost of increase in the labour prices and a decrease in the number of available labours within the
country. It has been determined that, earlier a major portion of the labour that used to carry out
the business operations within the United Kingdom was availed within the country from the
member countries of the European union (Shahzad, and et.al 2019). These labours were availed
at affordable prices within the country and it helped the business in acquiring labour at low
prices and used to help the labour by providing them with a source of employment within a
country which near to their native place. However, the Brexit deal affected the flow of labour
from the European Union to the United Kingdom. It has affected the business operations of the
companies within the United kingdom as now they have to face shortage of labour and acquiring
labour from other parts of the world demands a higher price which might be difficult for the
companies to pay to them for such small roles within their business operations. This also affects
the profitability of the companies and thus, negatively impacts the economy of the United
Kingdom.
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CONCLUSION
On the basis of the above report, it can be stated that even though, the United Kingdom
regained their sovereignty from the Brexit Deal, however, it has been impacted negatively in a
number of ways. It is difficult to state whether the advantages of leaving the European union are
more or the negative impact of this deal are higher. The Brexit deal has opened several doors
for the United kingdom as now they do not have to take permission from the European Union
before forming international treaties and trade agreements between countries which are not a part
of the European Union. However, the fact cannot be ignored that a major portion of the business
operations of the United Kingdom was benefitted from the European Union but now the United
Kingdom will not be able to conduct the business operations with the member countries of the
European Union.
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REFERENCES
Books and Journal
Shahzad, K., and et.al 2019. UK's stock market reaction to Brexit process: A tale of two
halves. Economic Modelling. 80. pp.275-283.
Topliceanu, Ș.C. and Sorcaru, S.L., 2019. The effects of Brexit on the European Unions
economic power and implications on the British economy. Acta Universitatis Danubius.
Œconomica. 15(6).
Bloom, N., and et.al 2019. The impact of Brexit on UK firms (No. w26218). National Bureau of
Economic Research.
Stoupos, N. and Kiohos, A., 2021. BREXIT referendum’s impact on the financial markets in the
UK. Review of World Economics. 157(1). pp.1-19.
Hix, S., 2018. Brexit: Where is the EU-UK relationship heading. J. Common Mkt. Stud., 56,
p.11.
Bisciari, P., 2019. A survey of the long-term impact of Brexit on the UK and the EU27
economies.
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