Brexit and its Impact on UK: Real Independence or Illusion?
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Added on  2023/06/13
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This report analyzes the impact of Brexit on UK and whether the newfound independence is real or just an illusion. It discusses the economic and financial challenges faced by businesses and the implications on labor shortages and access to external markets.
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BUSINESS LAW AND ETHICS
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Table of Contents INTRODUCTION..........................................................................................................................2 TASK..............................................................................................................................................2 Does the new found independence of the United Kingdom is real or just an illusion...............2 Impact of Brexit on UK..........................................................................................................3 CONCLUSION...............................................................................................................................5 REFERENCES................................................................................................................................6 INTRODUCTION For the effective management of the business, it is very much required that the company must have the keen knowledge of the prevailing business laws of the country. But at the same time it is also believed that no business can proser in the long run without following the approach of ethical principles. Both the concept which are law and ethics compliments each otherand therefore works hand in hand(Alabrese and et. al., 2019). The principles of the business ethics are the one which are based on the concepts of right and wrong. The following report is going to discuss the fact that whether the independence acquire by the UK after being separated from European union is in real exists or is it just an illusion. TASK Does the new found independence of the United Kingdom is real or just an illusion. Brexit is the cluster of two words which are the British and exit. This term has been coined to mark the decision made by the United Kingdom on June 23 of 2016 in order to get separated from the European Union. After which the relations between the European union and UK stands based solely on the Trade and Cooperation Agreement by which a major change was
brought for the citizens, companies as well a public authorities for both the countries. Moreover, the said agreement mainly is bifurcated into four major sections, where the very first talks about the free trade while eliminating the tariffs and custom duties between the EU and UK. The second part specifies regarding the framework of the social, economical and environmental corporations which comprises of the aspects relate to social security and transport(Bloom and et. al., 2019). The third part comprises of the concerns regarding the internal security mainly based on the aspects fight against funding of terrorism and money laundering. The very last part which is the forth one specifies the establishment of common governance system. The United Kingdom formally left the EU on January 31 of 2020 but even after so much time has passed away one cannot in specific manner conclude that there lies more long term benefits or cons. Moreover, for Brexiters the sovereignty can be seen as a simple win even though it involves the giving up of certain control and powers over the domestic affairs. Also it is seemed that the institution of the EU has drained certain powers from the parliament of the UK. Thus for leavers, it can allow the Britain the chance to re-establish itself as an independent country while also having connections with the rest of the world. But whereas on the other side for the country who decides to remain it would result as a giving up its influence in the Europe(Brown, Liñares-Zegarra and Wilson, 2019). Further with respect to the view that whether the independence is real or illusionary, there lies the number of the predictions and ideas of various economists. With the measure of Brexit undoubtedly there was created an uncertainty for the interested investors of the country which directly pays negative impacts on the economy of the Britain. As it is impossible for the country to change its geography in order to make the said aspect more favourable. Further, the continental Europe is the main trading partner of the Britain and hence the Britain wishes to maintain the access certain goods and services along with the labour market of the Europe. Therefore both the countries requires the other in order to pursue thedifferent models of association. Impact of Brexit on UK Moreover the measure of Brexit has made a great impact on the Country of United Kingdom as a result of this the economy of the country has slowed down. Because of this
concern the many companies and organisations has made a drastic shift towards the territory of European Union in order to establish their headquarters. Some of themajor impacts of the Brexit with respect to various aspects are as follows- The very first being with respect to the factor ofgrowth.One of the major drawback of being separated from EU is that the economic growth of the country has faced a great number of damages where most of them are the result of the uncertainty surrounding the final outcome (Burrell and Hopkins, 2019). On an average the growth of the country has decreased from 2.4% to 1.6% as of year 2019. also with the decrease in the British pound the prices of the imports got increased and has to till date not attained its actual pre Brexit high. The other being with respect the factor ofJobs, the decision of Brexit has greatlyaffected the young workers of the Britain. The said jobs as an opportunity are no longer available in the favour of workers of UK after the measure of Brexit. Because of this the the availability of the applicants have become a difficult tasks for the employers.The other major factor which got affected by the this decision is theTrade, where now it is required on the part of United Kingdom to negotiate with other states which lies outside the ambit of European Union mainly with respect to the new trade agreements , which comprises of more than 45 trade agreements with over 70 countries being already in place. Moreover while seeing from the other side thelong term effects of the Brexit can be proved to an positive impact for the country. Also decision of the Brexit with respect to certain aspects stands important for the country. Brexit changes the nature of the formal relationship between the United Kingdom and the European Union while throwing the London's place as global financial centre into the question. By this it tends to create a new limitations of trade between the UK and the rest of the Europe. By this the ability of the citizens if the Britain gets also limited to certain extent with respect to the free movement around European Union. But it is believed that these are only some few important effects of the Brexit whereas the full impacts are yet to be found or need to be unfold by the country(Koller, Kopf and Miglbauer, 2019). Other than this there also lies variousbenefitsas a result of Brexit , as with this the United Kingdom has achieved comparatively more freedom for the purpose of creation of their own deals and regulations regarding the trade. Moreover, a hard Brexit is a situation where the UK tends to give away the access of the single market as well as custom unions. But the action of regaining of the sovereignty by the UK has not only seemed a
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win win situation of itself but for the other states as well who opted to stay in the cluster of European Union. As this also had encouraged a large increase in the immigration into Britain and created difficulties fulfilling housing and service needs but by the measure of hard Brexit the United Kingdom will have and can exercise the full control over its borders. Similarly there also number ofdrawbackswhich takes place asa result of Brexit. The country United Kingdom by being the part of European Union, benefits from the trade deals between European Union and other powers of the world which means the other states. As an entity the EU, comparatively exerts stronger bargaining powers with it being one of the largest economy represented as a group. Therefore the UK by having the decision of being separated from the EU would loose the most of its negotiating power as well as the benefit of free trade with other European countries. Also now even if UK tries to recreate the previous deals of the trade with other countries there lies the more chances on its part to have the less favourable results as compare to the earlier situation. Moreover, the uncertainty of the Brexit also causes volatility and affects the operations of the business which are being operated within the country. In the case of hard Brexit, the said goods and services are top be subjected to tariffs which result in increasing the costs of raw materials into Britain and similarly on the finished products out(O'Rourke, 2019). CONCLUSION It can be concluded from this report that Brexit has major economic implications on the businesses of UK. It has been analysed that Brexit has resulted financial and economic challenges which are now faced by the businesses. It can have implications in the form of labour shortages and reduction in the access that the major businesses have to the external market. But these effects are largely dependent on the final deal that is going to take place among the UK and EU that shall determine the operation of different professional entities.
REFERENCES Alabrese,E.,andet.al.,2019.WhovotedforBrexit?Individualandregionaldata combined.European Journal of Political Economy,56, pp.132-150. Bloom, N., and et. al., 2019.The impact of Brexit on UK firms(No. w26218). National Bureau of Economic Research. Brown, R., Liñares-Zegarra, J. and Wilson, J.O., 2019. The (potential) impact of Brexit on UK SMEs:regionalevidenceandpublicpolicyimplications.RegionalStudies,53(5), pp.761-770. Burrell, K. and Hopkins, P., 2019. Introduction: Brexit, race and migration.Environment and Planning C: Politics and Space,37(1), pp.4-7. Koller, V., Kopf, S. and Miglbauer, M. eds., 2019.Discourses of Brexit. London: Routledge. O'Rourke, K., 2019.A short history of Brexit: From Brentry to backstop. Penguin UK.