Impact of Brexit on UK: Business Law and Ethics

This report discusses the impact of Brexit on the UK economy and its job opportunities. It also highlights the positive and negative effects of Brexit on the country's independence. The report is relevant to the subject of Business Law and Ethics.

Business Law and
Ethics
Contents

INTRODUCTION...........................................................................................................................2
MAIN BODY..................................................................................................................................3
Does the new found independence of the United Kingdom is real or just an illusion.........3
Impact of Brexit on UK.............................................................................................................4
REFERNCES...................................................................................................................................6

INTRODUCTION
The business laws and business ethics are the two varied concepts. But both the said
aspects work hand in hand in coordination to each other. The business law is the civil body
which mainly helps in regularising and governing the affairs of the business starting from their
incorporation to their dissolution. Hence it is a required on the part of every company to have the
understanding of prevailing business laws for ensuring their effective and successful working.
Whereas the other being the business ethics are the generally laid principles on the belief of as to
what is right and what is wrong (Bloom, et.al., 2019). For the working of business there lies the
need of both the aspects as the organisation cannot prosper in long run without having the
approach of laws as well as ethical principles. The following report will have the discussion
regarding the independence of United Kingdom which they attained by the way of BREXIT
along with the underlying impacts on the country.
MAIN BODY
Does the new found independence of the United Kingdom is real or just an illusion.
The term BREXIT has been coined by two different terms which are the British and Exit.
This term mainly has been outlined to depict the action of exit of United kingdom from that of
the European Union. On an official note the country marked its existence on dated 23 June of

2016. After the measure of separation the agreement named Trade and Cooperation become the
sole document in accordance of which the relation of EU and United Kingdom are carried out.
As a result of this agreement various changes were also made affecting the people as well as the
companies of both the states. The agreement of Trade and Cooperation mainly comprises of four
heads. The first section states provisions regarding the further elimination of the custom duties
and tariffs among the United Kingdom and European Union (Brown, 2019). The other head of
the agreement elaborates the outline of economic, environmental as well as social corporations
which consists of the features regarding the measures of transport and social security. The other
major head head of the agreement, details the issues related to the matters of money laundering,
fight for terrorism and its funding, etc. the last head of Trade and Cooperation agreement
outlines the framework of common governance system in the states.
The 31st January of 2020 is the date on which the United Kingdom in an official way left
the ambit of European Union, even after the passage of this much time it stands very difficult to
understand that whether there lies the more benefits to it or the drawbacks. Furthermore for the
people favouring Brexit, sovereignty can be resulted as the situation of win irrespective of the
fact that they are also subjected to loose some powers as well over the domestic affairs. Other
than this the United Kingdom parliament has assigned various authorities to the establishment of
European Union (De Ville and Siles-Brügge, 2019). Hence as a result of which, the countries
which are leaving can have an opportunity to re-establish themselves as an more independent
state while also having separate personal level relations with the other countries as well. But for
the other part of the countries who are having to consensus to remain, will result in giving up
their power in Europe.
Moreover, various renowned economists has outlined their views as well as predictions,
in order to ascertain the fact that whether the newly acquired independence is actual or is it just
an illusion. The action of United Kingdoms departure from European Union has resulted in the
lot of uncertainty mainly for the potential investors who were looking forward to make
investments in the country. By the way of this the overall economy of the country also gets
negatively impacted while lowering its GDP. Other than this the separation also has impacted the
benefits which the state was enjoying as a part of geographic favourabilities which now is longer

the same as it stands an impossible task for any country to alter its geography. Other than this the
continental Europe is considered as the leading trading partner of United Kingdom because of
which it wishes to have the same access with respect to the goods and services which they were
having before along with the availability of the labour forces (Minford, P., 2019). Hence,
because of these contentions it can be laid down that both the countries in one or other way
requires the assistance of each other for the purpose of following the different models of
association.
Impact of Brexit on UK
In addition, Britain's Brexit measures had a major impact on Britain's countries and slowed down
Britain's economy. Due to this concern, many companies and organizations have made
significant shifts to the territory of the European Union to establish their headquarters. Some of
Brexit's main impacts on various aspects are -
The very first is about growth factors. One of the main drawbacks of the split from the
EU is that the country's economic growth has suffered widespread damage. Most of them are the
result of uncertainty about the final result. On average, national growth slowed from 2.4% to
1.6% in 2019. Despite the fall in the pound sterling, import prices have risen and have not yet
reached their pre-Brexit highs.
On the other hand, Brexit's decision on employment factors has hit young British workers
hard. After the UK's Brexit measures, UK workers were no longer able to take advantage of the
above jobs as an opportunity. This makes securing candidates a difficult task for employers
(Pollard, J.S., 2021). Another important factor affected by this decision is trade, and the UK is
currently negotiating with other states outside the European Union, primarily in relation to new
trade agreements, including more than 45 trade agreements is needed in over 70 countries.
In addition, the long-term effects of Brexit from the other side can be demonstrated as a
positive effect for the country. Brexit's decisions on specific aspects are also important to the
country. Brexit is changing the nature of the formal relationship between the United Kingdom
and the European Union while challenging London's position as a global financial hub. This
tends to create new trade restrictions between the United Kingdom and other European countries.
It also limits the ability of British citizens to move freely within the European Union to some
extent. However, while these are believed to be some of Brexit's major impacts, the country has
not yet discovered or deployed a full impact.

Apart from that, Brexit has many advantages because the UK has a relatively high degree
of freedom in building its own trading and trade restrictions (Rosamond, B., 2019). In addition,
Brexit is a situation in which the UK tends to provide access to the Single Market and Customs
Union. However, Britain's actions to regain sovereignty seemed to be favourable not only to
itself, but also to other states that chose to stay in the European Union cluster. Brexit gives the
UK complete control of the border, as this has led to a surge in immigrants to the UK, making it
difficult to meet housing and service needs.
Similarly, there are many disadvantages that result from Brexit. The United Kingdom as
part of the European Union benefits from trade agreements between the European Union and the
other major powers of the world, namely other states. As a unit, the EU is one of the largest
economies represented as a group, so it exercises relatively strong bargaining power. Therefore,
by deciding to leave the EU, the UK will lose most of its bargaining power and the benefits of
free trade with other European countries.
Even if the UK is now trying to restore a previous trade deal with another country, it is
more likely to achieve adverse results than in the previous situation (Simionescu, M., 2018). In
addition, Brexit's uncertainty also causes volatility, affecting the operation of businesses
operating in the country. If the UK is difficult to leave the EU, tariffs will be levied on the goods
and services in question, resulting in the cost of raw materials to the UK and the increase in
finished goods as well.
CONCLUSION
From the following report it can be very well concluded that the action of separation of United
Kingdom from that of European Union details both the positive as well as negative effects on the
country. Therefore the ascertainment of the fact with respect to the actual independence of the
country remains uncovered as per the views of various economists which may become definite
with the passage of time. It also summarises the several impacts which the act of Brexit has
played on the country mainly related to the investments, job opportunities and the overall growth
of the economy.

REFERNCES
Bloom, N.,et.al., 2019. The impact of Brexit on UK firms (No. w26218). National Bureau of
Economic Research.
Brown, S.A., 2019. Brexit, the UK and Europe: Why, how and what next?. Journal of European
Integration, 41(1), pp.123-129.
De Ville, F. and Siles-Brügge, G., 2019. The impact of Brexit on EU trade policy. Politics and
governance, 7(3), pp.7-18.
Minford, P., 2019. The effects of Brexit on the UK economy(No. E2019/1). Cardiff Economics
Working Papers.
Pollard, J.S., 2021. Brexit and the wider UK economy. Geoforum, 125, pp.197-198.
Rosamond, B., 2019. Brexit and the politics of UK growth models. New political
economy, 24(3), pp.408-421.
Simionescu, M., 2018. The impact of Brexit on the UK inwards FDI. Economics, management
and sustainability, 3(1), pp.6-20.
2019)(Pollard, 2021)(Rosamond, 2019)(Simionescu, 2018)