Impact of Brexit on UK Economy: A Critical Analysis

This report critically discusses the impact of Brexit on the UK economy, analyzing both the positive and negative effects. It examines the new-found independence and evaluates whether it is real or just a facade. The report also explores the implications of Brexit on trade, regulations, and employment opportunities.

Business Law and
Ethic

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................6

INTRODUCTION
Ethics are moral principles and social values that need to be considered by business for
long term growth and success of enterprise. There are various law imposed by government of
country that need to be abided by organisation for smooth operation and building of strong brand
image, customers satisfaction level. This report is about one of the regulation that is made by
government of UK to exist from partnerships of European Union to have own rules and
regulation or enjoy independence. It critically discusses impact of new found independence is
real or just facade and it also analysis various positive and negative impact of Brexit on Uk
economy.
TASK
Brexit is policies or a rule that is made by government of UK in order to exist European
Union to have full control over decision making of UK. Being a part of European Union UK has
to compile with various rules that are made by them so they cannot operated independently and
smoothly. More than 3 years were taken for such referendum after vote of many people which
have make people or citizen of UK happy (Haugh, 2017). Some of the EU laws were followed
by UK till 31 December such as free movement of people so that each individual can reside or go
to its country for job and live hood. UK wants permanent free trade agreement from European
Union as it was one of the main trading partners of UK. It can also be stated that UK was first
nation to opt out of EU as most of citizens have voted overwhelmingly for referendum. UK by
implementing Brexit is able to established full sovereignty because it does not have to follow
various rules and regulation made by EU (Fabbrini, 2017). UK can easily use billion of pound
for growth and development of economic as it has contributed to budget of EU. UK after exits
from European Union is able to independently trade and negotiate with different countries to
effectively exchange products and services and earn specific amount of profitability. It also
contribute towards lesser formulation of rules and regulation at workplaces thus more job
prospects can be available for people to get good working environment or place to work (Koch,

2017). Brexit have also provide opportunities to UK to receive fresh and new investment from
different countries aspect EU. Wages of British worker have been put down as citizen can work
at any member states but due to Brexit UK have independent rules, policies that will enhance
wages and working condition of worker. UK also have make changes or amend in regulation
made by EU to make saving shrugging off.
On 31 January UK have finally left European Union as 52% of people have voted for such
drastic changes for gaining independence. But in reality it is not done and cannot be
implemented in near future or really happen. In legal term Britain have left EU but to little or
some extend only because various factors that drive people to vote brexit need to comply with
regulation made by EU for end of agreement (Fernandes and et.al., 2019). Even after Brexit UK
have gained control over some of its laws and there are huge debates of mitigation thus it can
Britian can never exit from EU. Both Brussel and London stated that Brexit will only make
change in flag and other things will remain as it was before. Some of the people are violating
sovereignty and migration from various member countries of EU will also be continued even
after Brexit. So, it can be illustrated that only changed that have been brought through
implementation of Brexit is that people of British have no right or authority to vote in European
council. At the same time they have to follow specific rules and regulation that are made by EU
till end of year so there is no sense of what people wants that is take back control (Lightfoot,
Mawdsley and Szent‐Iványi, 2017). UK Being a member of European Union have large market
share to export extra product and services to member countries so that they needs can be satisfied
and economy can grow at high pace. There are set of rules and regulation made by EU that
contributed in effective trading and governing such as food standard, product safety and other
regulatory measure so that no harm can be caused to member countries (Ott and Ghauri, 2019).
Products that are jointly assembled or manufactured by UK and EU have to compile with
specific rules and regulation made by EU. At the same time EU have major market so its rules
are mostly followed while exchange of products and services for effectively growth and
sustainability of UK economy. There are numerous legal or regulatory battles which states that
Brexit cannot happen in reality such as UK in order to exchange good and services with EU have
to follow their rules which does not give them full independence or right to take decision.
British government since 3 years making its own laws and regulation to negotiate with
different countries on terms of various trade agreements but could not get many benefits. London

is making continuous efforts to strike or make a uncompromised deal with EU in order to have
independent law and rules and regulation. It have made partnership with countries such as Jordan
and Georgia that have contributed in overall British trade of 8% thus it can be stated from deals
that UK is not able to trade independently as it have to follow or accepts rules that are made by
government of country (Vasilopoulou and Talving, 2019). As per Junker UK will regret for
living EU as he said that Brexit is not future of Europe and more time will be need by EU and
UK to negotiate on terms of trade and tariff so that particular outcome can be gained. United
kingdom has signed trade deal with Swiss that have choose to implemented laws that are made
by EU for cross border trade in order to get maximum benefits.
Since Brexit economic of UK has to suffered huge loss due to decrease in employment
opportunities and import and export, sales volume of business thus impacted overall GDP of
country. UK also has to pay a divorce bill of 33 billion pound for fulfilling requirement of any
financial commitments. There are various consequences that UK currently have to face since
implementation of Brexit regulation such as economic slowdown and shift of enterprise to their
headquarters that is EU (Barnard, 2017). It can be stated that Brexit have negatively impacted on
economic growth of UK as it have been reduced from 2.4% in 2015 to 1.5% in 2018. It have
been analysed and interpreted form data that UK economic have to suffered economic slowdown
by 6.7% till 15 years. There are various restrictions on immigration despite of trade agreement
between UK and EU. British Pound have also felled down from $1.48 to $1.36 for next day’s
thus it have promoted exported but increased cost or price of imported goods and services.
Another disadvantage or consequence of Brexit is that it has eliminated Britian’s tariff- free trade
status that UK has with all other member of EU. Thus tariff has lead to increase in cost of
products in Europe or export of products and services indirectly impacted on overall GDP and
export of country. More than one third products are imported by UK form EU but tariff has
increased overall cost of import thus lowering living standard of people and creating high
inflation rates (Alfano, Dustmann and Frattini, 2016). It can also make use of art technologies
that are granted by EU to its member countries for environment protection, energy and research
and development. Overall it can be illustrated that implementation of Brexit have adverse impact
on economic, social well being of people. It have been expected that Germany has to face
shortage of labour approx 3 million till 2030 because of implementation of Brexit therefore ex
presidents have said that UK have to regret for voting Brexit in order to enjoy freedom. Due to

decreased in overall sales volume and profitability of organisation they does not require more
employees to fulfil customer’s requirements. So, Brexit has lead to increase in unemployment
rates of UK thus affecting lifestyles of various individual.
CONCLUSION
It can be concluded that UK is not being a part of EU but at the same time it have not really
left EU that can be stated that still it follows various rules and regulation that are made by EU.
Flag have been removed but rules, policies and trade regulation are implemented as per
European Union. Therefore it can be stated that Sovereignty will be existed till Britain have full
control over EU market. There are various reason that have forced citizens of UK to vote for
Brexit and debates about migration and have full control over Britain operation. At last it can be
concluded that Independence was one of the main reason UK have decided to implement Brexit
but it reality it have not happened.
REFERENCES
Books and Journals
Alfano, M., Dustmann, C. and Frattini, T., 2016. Immigration and the UK: Reflections after
Brexit. Centro Studi Luca d'Agliano Development Studies Working Paper, (402).
Barnard, C., 2017. Law and brexit. Oxford Review of Economic Policy, 33(suppl_1), pp.S4-S11.
Fabbrini, F. ed., 2017. The law & politics of Brexit. Oxford University Press
Fernandes, L. B and et.al., 2019. Implementation of a multi-disciplinary ethics unit. International
Journal of Ethics Education, 4(2). pp.109-123.
Haugh, T., 2017. The ethics of intracorporate behavioral ethics.
Koch, I., 2017. What's in a vote? Brexit beyond culture wars. American Ethnologist, 44(2),
pp.225-230.
Lightfoot, S., Mawdsley, E. and Szent‐Iványi, B., 2017. Brexit and UK international
development policy. The Political Quarterly, 88(3). pp.517-524.
Ott, U. F. and Ghauri, P. N., 2019. Brexit negotiations: From negotiation space to agreement
zones. Journal of International Business Studies, 50(1). pp.137-149.
Vasilopoulou, S. and Talving, L., 2019. British public opinion on Brexit: controversies and
contradictions. European Political Science, 18(1). pp.134-142.