Impact of Brexit on Trade and Investment (Doc)
Added on 2020-10-22
17 Pages3921 Words139 Views
Political Science
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BREXIT
Table of ContentsINTRODUCTION...........................................................................................................................1TASKS.............................................................................................................................................11. An explanation on key trends on trade of goods and services between commonwealthcountries......................................................................................................................................12. Explanation on impact of Brexit on trade and investment for creative industry sector in UK.....................................................................................................................................................63. Challenges and opportunities for multinational companies of London with the implicationof Brexit......................................................................................................................................9CONCLUSION .............................................................................................................................13REFERENCES..............................................................................................................................14
INTRODUCTIONThere is a strong linkage between commonwealth countries and UK. It is so becausemany commonwealth countries are heavily depends on market of UK economy. Commonwealthcountries are known as developing countries which export material from UK market. This reportwill present the information which is related to key trends of goods and services betweencommonwealth countries. Further, in this report explanation is provided on the impact of Brexiton trade and investment within creative industries sectors of UK. At last in this report, criticalevaluation is provided on impact of post-Brexit for multinational companies in London.TASKS1. An explanation on key trends on trade of goods and services between commonwealthcountriesIn the world of economics UK is the major player in world trade. Therefore, link of tradeis strong between UK and commonwealth countries. Accordingly, UK is known for the fourthlargest market which doing global trading and their flow of goods and services in marketeconomy is US$1.6 trillion which known as almost 4% to trade across the world (Hix, 2018).For UK, most important trading is EU which also has its contribution in trading and which is halfof overall trade of UK. Majorly affected country with the decision of Brexit is European Union.Their overall trade of goods and services majorly affected with comparison to UK.From past few years, this linkage between UK and commonwealth countries is constant,that is from US$57 billion in 2000 to US$91 billion in 2015. Therefore, in this report Brexit isconsidered for developing countries who trade goods and services with UK. UK is the known forlarge exporter of sugar, which buys 80% of sugar and import from Belize and 70% from Fiji. UKhas decided to leave European Union, therefore it is the opportunity for government of country todiscuss their trade point of view in post-Brexit world. The immediate challenge on the worldeconomy is uncertain (Dhingra, Freeman and Mavroeidi, 2018). There may be high degree ofspeculation to shape future trade for UK and EU. Many business organisations will have tochange their policies and operation model for Brexit because there will a major impact on factorslike supply chain market, current compliance regulations, existing approvals etc1
UK has strong trade relationship with Australia, Canada and India, therefore this is theopportunity for them to develop more strong relationship with this countries in post-Brexitworld. Chart which shows import and export of UK from EU and from rest of the world.From the above graph it is resulted that commonwealth countries plays a small part ofcontribution in UK trade. In 2015, there is only 9% of total trade in UK by commonwealthcountries as compared to EU which is 44%. From 1999 to 2010, there is a better growth ofexport between commonwealth countries and UK. But now the trend got reserved and its overallexport from commonwealth countries will get decline in 2013 and fell by £25.1 billion in 2015.In 1999, services of UK export was almost triple that is £8.5 billion and increase with the£22 billion in 2010 which again increases in 2015 with £22.3 billion (Brown, Liñares-Zegarraand Wilson, 2018). Therefore, a graph which shows it trends throughout given year is asfollows-2Illustration 1: UK import and export( source: Commonwealth trade in focus as UK prepares for Brexit, 2017)
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