Brexit and Its Impact on Logistics and Supply Chain Activities

Running head: BREXIT
Logistics and Supply Chain Management
3/2/2019

BREXIT 1
Table of Contents
Introduction................................................................................................................................2
Brexit......................................................................................................................................2
Influence of Brexit on Logistics and Supply Chain Activities..............................................4
Impact on Exports and Imports..........................................................................................4
Freedom of Movement.......................................................................................................5
Customs and border controls..............................................................................................6
Strong Logistics Partners Count.........................................................................................7
Retail Outlook....................................................................................................................7
Supply Chain Jobs – Winners and Losers..........................................................................8
Investment Decisions.........................................................................................................9
Conclusion..................................................................................................................................9
References................................................................................................................................11

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Introduction
Political instability is the key threat to the success of the business, operating their activities in
the worldwide supply chain. Companies with global sourcing should understand the adverse
effect, political instability could have on their relationships, quality, and productivity and
make strategies to overcome the risk (Aisen and Veiga, 2011). Political instability signifies a
major threat to worldwide supply chains. Through contingency planning and risk assessment,
these threats must be properly inspected. Political uncertainty is the tendency for
administration change, violence among people, uncertainty, and unpredictability in the
program of the government, like human rights, property, regulatory, law. Any change in the
political conditions comprising one or more of the abovementioned triggers have the
possibility to result in issues at the domestic level along with this it creates key worldwide
supply chain turmoil (Kettering, 2018). The intent of this paper is to discuss the planned
departure of the UK from the EU that is European Union called as Brexit and its impact on
the logistics and supply chain activities.
Brexit
Brexit is the abbreviation for “the exit decision of British from the European Union,” that is
Brexit on 23 June 2016. The results of the vote challenged anticipations and shaken the
worldwide markets. It also consequence in the fall of the British pound to the lowest level, in
comparison to the last 30 years dollar value. The Prime Minister, requested poll to continue
in the European Union, reconciled the following month (Goodwin, 2016).
“Leave” won 2016 vote with around 51.9% of the election, or it can be said that 17.4 million
votes; "Remain" got around 48.1% vote, or 16.1 million. Total number of voters available
was 72.2% (Times Now News, 2018). The fallouts were checked on the UK basis; however,

BREXIT 3
the total figures cover unambiguous regional differences: around 53.4% of English electors
supported British Exit, in comparison to Scottish voters that are 38.0%. As the maximum
percentage of the UK population, is comprised of England who was in support of Brexit. If
the voting had been directed in the Wales area, where also “Leave” won, Northern Ireland
and Scotland, Brexit would have got only 43.6% vote (Hobolt, 2016).
Source [(Hobolt, 2016)]
European Union mostly called, as the EU is the political and economic partnership,
comprising 28 European nations. It was established after World War II in order to nurture
monetary co-operation, with the notion that nations, which do trading together, were likely to
evade going for the battle with each other. EU has been founded to be the "single market"
authorizing people and goods to travel everywhere, because the states with the membership
are one country. The EU has Euro as its distinct currency, which is consumed by almost 19
nations of the member states (Hunt and Wheeler, 2019). EU has its parliament that is focused
towards setting the rules in the broad range comprising consumer rights, environment,
transport, and regarding things like charges of the mobile phone.
UK is said to be the open economy with a comparative advantage in terms of services that are
dependent majorly on trade with the EU i.e. the European Union. In the year 2015, the trade
openness of UK, evaluated by totalling the imports and exports relative to GDP, was 0.57, in