Impact of Brexit on UK: Business Law and Ethics

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