Impact of Brexit on Foreign Investment in UK

To identify the Impact
of Brexit on the foreign
investment of UK

Contents
CHAPTER 1: INTRODUCTION ...................................................................................................3
CHAPTER 2: LITERATURE REVIEW.........................................................................................6
RESEARCH METHODOLOGY ..................................................................................................23
CHAPTER 4: DATA ANALYSIS AND DISCUSSION .............................................................29
CHAPTER 5: CONCLUSION AND RECOMMENDATION ....................................................37
Conclusion.................................................................................................................................37
Recommendation.......................................................................................................................39
Limitation of research................................................................................................................41
Reflection...................................................................................................................................41
REFERENCES .............................................................................................................................43

CHAPTER 1: INTRODUCTION
Overview of the topic
BREXIT is the name given by the European Union for the departure of the United
Kingdom. It enacted the foreign investment in a certain way which resulted in investing outside
of the country for expanding the existing business. In all the countries the WTO manages all the
trade protocols which have to be followed by all the nations. But, Europe has its different
committees in which all the countries comprising in Europe have to follow the structure and the
regulations of the merchandise for the products and services (Eichengreen, 2019). But when the
UK withdrew itself from the EU, it majorly impacted
the policies and the market of Europe adversely. The principles changed, the
immigration of various people across the borders flipped and lead to the downfall of the
economy. This led to an increase in foreign investment. Foreign Investment is done for
enhancing the business opportunities in the international market, which synonymously upgrade
the companies for expansion. It is the expenditure that the domestic organisations tend to make
in foreign countries. This helps the entities in making a new investment and helps in sustaining
in the market for the long – term.
Research aim and objectives
Aim: To determine the negative or positive impact of Brexit on the foreign investment flowing
into UK.
Objectives:
1. To assess the influence on the trade volume of UK after the exit of the European Union.
2. To evaluate the various challenge that UK faced while carrying out its business
operations.
3. To determine the benefits of foreign investment in terms of Brexit (Henry and Smith,
2021).
4. To identify the framework of foreign investment in the context of Brexit for the trade of
goods and services in the United Kingdom.
Research questions
1. Find out the impact of Brexit on the trade volume of UK?
2. What are the challenges that are faced by UK for carrying out the business activities?

3. What is the impact of foreign investment in Brexit and to other countries?
4. What are the frameworks of the foreign investment related to the merchandise of the
goods and services?
The rationale of the study
The reason behind the conduct of this study is to find out the impact of Britain’s exit
from the European Union. It thereby addresses the research aim and is very significant for
knowing the impact of Brexit. This study will help the economies of various nations to before
think about their doings (Moskal, 2018). It should be highlighted that this research can be
accomplished when the data about the post-impact of Brexit can be collected. This can happen
by analysing the results and position of various economies of the countries in Europe which have
been affected due to the exit of the UK from the European Union. For the students, the research
will assist the students in the improvement of the general knowledge about the happening in the
world which can affect the economy of several nations. It will help the students in knowing
about the business which has flourished in the times and how the non–following of the WTO and
the trade committee regulation affects the organisations adversely.
Outline of the methodology
The methodology defined what research techniques are being utilised for the
accomplishment of the research objectives. It will help in analysing the data regarding the
fulfilment of the topic. In research, several methodologies are given which are used for the
collection of the data. In this study, secondary research is done. The methodologies which will be
are interpretivism philosophy, inductive approach, qualitative choice (Napiórkowski, 2018).
These are the key and the essential methodologies that need to be fulfilled for carrying out the
research for getting valid outcomes within the minimum period.
Structure of the report
The research paper consists of various chapters which will help the researcher in
systematically completing the activities. For this the structure of the report is to be framed which
is defined below:
 Introduction: It is the first chapter of the study which encloses the understanding of the
topic for the researcher. This chapter includes the topic of the study, aims, objectives, and
the research question. It also includes an overview of the topic, the reasons behind the

study and the methodology that the investigator will use for the completion of the
research.
 Literature Review: This is the second chapter through which the secondary data about
the topic will be collected. Therese are various sources through which the investigator
can gather information regarding the impact of Brexit on foreign investment. The number
of sources can be books, publications, articles, research and many more.
 Methodology: The type of approach that the research uses regarding the study is covered
in this chapter. These approaches are qualitative, secondary, inductive approach,
interpretivism philosophy and qualitative choice (Simionescu, 2018).
 Results and Analysis: This is the other chapter that assists in the evaluation of the
information which has been gathered from the question and through the secondary
research. It can be analysed with the help of any research analytical tool. For this
evaluation, the thematic analysis.
 Conclusion and Recommendations: This is the last chapter from which the conclusion
will be made regarding the research study. The finding and the suggestion for the
investigators will be made here according to the whole study which will be proceeded. It
will help in attaining the aims and objectives of the researcher successfully. The
suggestion will help the researchers for doing further research on the topic similar to this
for finding the research gaps.

CHAPTER 2: LITERATURE REVIEW
Find out the impact of Brexit on the trade volume of UK?
From the point of view Sebastian Whale and George Arnett (2022), the impact of the Covid
19 and Brexit has affected UK trade volume and their performance has been considered to be
worse than comparable EU economies. Despite they are being a part of the European Union, the
supply chain system they had with the UK has been enormous. The trade of the UK with the EU
has been dropped immediately at the end of the Brexit transition and the exports made by the UK
falls by 45% and imports by 33% from 2019 to 2021 which affected the businessman and their
businesses.
The other countries such as Gemrany, France, Spain, Italy are some of the nations which are
the part of European union and have mostly recovered from the Covid 19 but in the case of the
UK where flows in the Quarter 3 of 2021 were lower in the context of GDP since 2009.

The worst is that trade in the rest of Europe was going to be increasing and in the case of the
UK it is decreasing. The head of international affairs, James Sibley, of the small business told
that small and medium enterprises have been severely affected disproportionately due to the
impact of Covid 19 and Brexit as they were experiencing low trade volume or their business
practices have been disrupted or their exports have been hampered completely.
According to Michael Gasiorek (2022), a decrease in trade with the European Union has
been expected due to the trade and cooperation agreement taking place between the UK and the
EU from the 1st of January.

Figure 1 Change in UK exports compared with the average of 2018-20 for the same months
The trade made by the UK in January shows a higher amount of decline. However, the
figures for February show some sign of recovery but trading significantly lowered as compared
to the previous year. The export made by the UK has been down by 13% in February 2021 and
the figures for January show a decline of 25%. The conclusion for such results is that the decline
in the exports that have been made to the European Union is almost twice the decline in trade to
non-European Union countries. The above indicators show that there is a high degree of
fluctuation in the statistics listed month-wise. However, there is some reverberation in February
but there is clear evidence regarding the negative influence of leaving the EU customs union and
single market on the UK trade with the EU.
As per the viewpoint of Thomas Pope (2021), On 31st December 2020, the UK left the
European union singly market and that’s made the highest change in UK terms of trading activity
in s generation. The new trade and cooperation agreement has been entered on 24th December
which provide maximum ventures and companies hardly a week to judge new changes that has
been taken place.