Impact of Brexit on UK: Business Law and Ethics

This report covers the consequences of the disunion between the United Kingdom and European Union, pre and post Brexit transitions, and the merits and demerits of the dissolution. It explains the impacts of the separation in terms of trade relations, business operations in single market established by the EU, and the Trade and Cooperation agreement which is maintaining the relationship between the UK and EU after the bifurcation.

Business Law and
Ethics
Executive Summary
This report will cover the consequences of the disunion between the United Kingdom and European
Union. It encompasses the pre and post Brexit transitions and the merits and demerits of the
dissolution. It explains the impacts of the separation in terms of trade relations, business
operations in single market established by the EU, in which it allows cross national relations
between the state parties. The report further talks about the Trade and Cooperation agreement
which is maintaining the relationship between the UK and EU after the bifurcation.
Contents
Business Law and Ethics......................................................................................................................1
Introduction..........................................................................................................................................1
Main Body............................................................................................................................................2
References............................................................................................................................................4

Introduction
For achieving any business goal, an organization is required to ensure an effective
management by acquiring knowledge regarding the prevailing business laws in the country. Besides
the understanding of the business laws, one is needed to follow certain ethical principles which can
lead a business organization towards the desired growth and develo0pment. In order to ensure
smooth running of a business, it is required to maintain a balance between the laws and the business
ethics or coordination among both the fundamental branch of rules (Bloom, et.al., 2019. The
concepts go parallel with each other. The report will include the impact of' Brexit' on the United
Kingdom. It will further cover the positive and negative impact of pre and post Brexit transition in
terms of the separation of the UK from the European Union(Bisciari, 2019).
Main Body
The term 'Brexit' means 'Britain exit'. Britain got separated from European Union in the year
2016 so as to ensure full control over the territorial aspects of the country. The European Union
forms a political and economic federation between the member states who are a part of the union.
Total 27 countries are associated with EU. The EU was formulated after the Second World War with
the purpose of providing security and economic cooperation among the member states. Its main aim
is to foster the economic growth of the countries in order to achieve financial independence. The
EU has created a huge single internal market so that the European nations can attract maximum
profits from it (Crowley, Exton and Han, 2018). The border control was abolished for the member
states which ensure free movement of goods and services. It provides freedom of choice to the
citizens of the EU countries to work and live in any of the member states. Every member state treats
the EU citizens with the same concern as they use to treat their own people in terms of taxes and
various duties on goods and services, employment opportunities and social security(Hill, 2022).
There are different institutions of the European Union, they are, the European Parliament includes
the citizens of the EU, the European Council includes the authorities of the member states, the
Council includes the governments of the various member states, the European Commission which
represents the involvement of the European Union entirely.
The Trade and Cooperation agreement is managing the relationship between the European
Union and Britain. The country has undergone through many major changes in terms of business,
trade related activities, cross border migration of people, etc. The agreement was being categorized
into four parts. The first part states the free flow of trade between the United Kingdom and
European Union without paying any taxes and custom duties. The second part describes the

fabrication of the socio economical, environmental structure and social security. The third part
states the matters related to the internal security which includes the issues of money laundering and
combating against terrorism (Fernández Paz-Saavedra and Coto-Millán, 2020). The last part that is
the fourth part comprises of the common constitution of the states which are forming the European
Union. The effect of the separation cannot be clearly ascertained. It is the view of many economists
and scholars that this detachment has both pros as well as cons respectively. Some of them believe
that the decision to exit European Union is right in order to emerge as an independent nation to take
its own judgements related to cross border migration of the people, interference of the European
Union in the parliamentary system, maintains their personal connections with the other countries,
etc. On the other hand there are some negative impacts also. Some of them are, it affected the
foreign investments which are done by the investors of the different countries when Britain was a
part of the European Union. Now the investors are uncertain to make their investments in UK post
Brexit)(Simionescu , 2018).
In terms of trade and investments, there were no restrictions on the cross border
reciprocation of various trade activities and business operations. The impact of the separation has
affected the business enterprises in UK. Britain made a lot of profits from the trade agreements that
were made when it was a part of the union (DeVille and Siles-Brügge, 2019). Because the countries
which are not the member of the EU, also wanted to make business relations with the states
associated with the union. But it must be noted that half of the country's exports were sent to the
union. Britain lost the trade and business related connections with the states after exiting the EU. Its
negotiating power also get affected by the bifurcation. The UK now needed to create a new image
in the market so as to maintain the trade relations with the other countries(Tetlow and Stojanovic,
2018). On the other hand, the disunion of Britain from the European union reduced the regulative
burden of the small and medium scale enterprises that came with the membership of the union.
They are not that much established to compete in the international markets with the large scale
businesses(Thissenetal, 2020). After leaving the union, the United Kingdom has signed various
treaties and trade agreements with different countries like Australia, Japan, Norway, Iceland and
Liechtenstein in the year 2021.
Its been two years since the United Kingdom has left the European Union. The country at last, left
the single common market and custom policies of EU. According to the UK, they got relieved from
a regulatory burden imposed by the European Union)(Portes, 2022). It also states that the separation
cleared each and every bottleneck that are affecting its power. It has been contended that UK has
taken back all its authority and control over the cross border migration, economical aspects, and the

laws. There are certain negative as well as positive impact of the separation which affected Britain.
There are certain negative as well as positive impact of the separation which affected Britain in one
way or the other-
 Sovereignty is always a major concern for the United Kingdom. This could be stated as a
major reason for exiting the European Union because the membership of the union includes
the interference in the domestic concerns of Britain. The EU has taken some of the powers
from the parliament of the UK(Barnard, 2018) (Tupa and VOJTOVIČ, 2018) . Whereas after
exiting European Union, Britain has to establish the relations once again as an independent
power with the other countries. Earlier it was seen as a member state of the union but now it
has transformed into a self powered nation.
 When Britain was a part of the European Union, there was no restriction on the free
movement of the trade or commercial activities as well as the people from other member
states of the union. The free flow migration of the citizens resulted in huge increase of the
immigrants in Britain. But on the other hand, the citizens of Britain were also not allowed to
migrate among the member countries of the European Union after the detachment. This has
affected the business opportunities, investments in other countries because earlier it was all
done at ease(Minford, 2019).
 Earlier at the time of pre Brexit transition, there were number of employment opportunities
for the citizens of other countries in the UK itself and the large number of migration has
increased the competition among the people of the United Kingdom and the citizens of the
other member countries(Crowley, Exton and Han, 2019). This had become a great matter of
concern for Britain. That their own population has to suffer a lack in the employment and
growth opportunities. But because of the separation the job possibilities for the British
citizens in the other states were also reduced.
 Every nation is highly concerned with the matter of security from terrorism, wars, other
country’s military operations, etc. As there was no border restrictions among the member
states of the European Union gave a huge amount of stress to the United Kingdom (Perez
and Olivie, 2020). There was no cross border control with any of the states who are a part of
the union. But, by becoming an organ of the European Union, none of the outsiders have the
courage to harm any of the member countries of the EU. The union is well equipped with
the power to tackle the situations like terrorists attacks and cross border crimes)(Rosamond,
2019).

Conclusion
This report concludes the effect of Brexit that is 'Britain Exit' from the European Union. The
separation of the United Kingdom from the union can not be settled on a single point of conclusion.
It covers both positive and negative impacts of the disunion. It also explains that UK is now
required to form new trade relations with the countries and also needs to build a new image in the
global market. On the other side of the coin, UK got back its powers over the Parliament which was
intervened by the EU to an extent.
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