Contemporary Business Environment: Brexit and its Impact

This study examines the contemporary business environment in light of Brexit and its impact on the UK. It discusses the debate surrounding Brexit, the current position of Brexit, and the obstacles faced during the process. The study also explores the value and consequences of Brexit, as well as the future of Brexit and its implications for the import industry. Advantages and disadvantages of Brexit are also discussed.

Contemporary Business
Environment

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY ..................................................................................................................................3
CONCLUSION................................................................................................................................7
REFRENCES...................................................................................................................................8

INTRODUCTION
Contemporary Business environments are increasingly dynamic and competitive. For coping
with changes in new concepts for controls of accounting must be accessed for the fat pace of the
economic changes. Thus, reliable and logical strategies of business and utilization of accounting
for management are necessary tool for the company to support plan, decision-making and
control.
Brexit is the withdrawal of United Kingdom from European Union. A referendum from
June 2016, in which 51.9% votes are given for leaving the UK. The study includes the debate of
Brexit, describing current position of the Brexit in UK. Defining the Brexit with its obstacles
which are faced by UK in approval of Brexit. The value and consequences of Brexit. Further the
study carried forward with effect and future of Brexit with import industry UK. The report ends
with the disadvantage and advantages of Brexit.
MAIN BODY
Debate of Brexit -
A Portmanteau of words “Britain” and “exit,” whereas Brexit is the shorthand for
Britain's disunited from European Union, changing its relationship to bloc on security, trade and
migration. The debate by Britain explains the pros and cons of their membership in the European
community almost when the idea was developed. The first vote on membership done in 1975
after wards it is named as European Economic Community. After the three years of joining, 67
percent of voters are meant to be in bloc(Popkova, Chechina and Sultanova, 2016).
Prime Minister David Cameron in 2013, has promised the national voter by offering the
idea of remain or leave with the European Union Membership. On 23 June 2016 , Britons voted
as a crisis occurs during the migration which had become a political issue across Europe and the
leave campaign has further moved on and thus Brexit won by 52 percent of voting. Particularly
almost all the voters in Wales and England from smaller cities and rural areas supported Brexit.
Current Position of Brexit -
The date of Brexit is set to be delayed till 31 January 2020 after the consent of UK's
request for extension by EU. The bill is to be gone through the parliament as Prime Minister

Boris Johnson had said that UK will leave it by 31 as this is the situation of “Do or die” for them.
Bill is rejected by MPs in parliament for third time as Mr Johnson originally wanted that the
election must held on 15 October, but it doesn't. Total MPs that is 434,two-third are needed for
conducting the early election according to Fixed-term Parliaments Act. It was rejected by the
parliament because it would eventually prevent country from bounding deals for trade with
another countries(Singh, 2018).
Definition of Brexit-
Brexit is the process under which United Kingdom wants to leave European Union (EU).
EU and UK reached to an agreement on the condition of Brexit process on 17th October. The
agreement is to be approved by the parliament of both European and British before entering into
force. The parliament of UK on 22 October agreed for the consideration to Brexit legislation.
Britain wants to leave the EU by October 31 2019. But the parliament of UK forced government
to have an extension and delayed for the new voting till 31st January 2020. It is avoided in the
parliament for three times. MPs need to have a soft Brexit which allows Britain to stay in bloc's
customs union are expected to initiate for amendments(Bansal and et.al., 2018).
Obstacles faced during Brexit -
Many obstacles are face during the Brexit as the agreement of leaving the EU is not been
passed among the parliament by MPs. This is not passed by them as they are mainly
concentrating on the inundation on trade within other countries which is the main concern where
the bill is not being passed in the parliament. The farmer's of UK before was rendered with the
direct payment of £2.4bn by European Union, which is a major issue for the UK government to
deliver such amount for these farmers or not (Neves, 2018). It bounds the employments from
other countries and thus the other country will also not allow employees from UK work within
their countries organization. Thus, this bounds the UK for trading with other countries,
employment opportunities from other countries and UK as well. Import and export tariffs
barriers will also be faced by UK after the implementation of Brexit. Free trade deals will also be
negotiated by EU while trading with 53 countries, which include Singapore, Canada and South
Korea. The preferential access for the single market is to be bounded by EU economy as UK
accounting services includes 80%(Kulshreshtha, 2015).

Value of Brexit -
Under the European Union import and export between member states has been bounded
by tariffs and other barriers. Other services including financial services are also restricted within
the continent. Thus, after the implementation of the Brexit UK can trade with the any country
without any denudation and tariffs and also render financial services to other countries. As UK's
50% of the export goes to EU countries (Korenik and Rogowska, 2017). The tariff free trading
would be implemented as they will have an individual UK's government that can be run or
reinvent as Singapore style economy where EU free rules and regulations are implemented in the
functioning of government. The large term of investments is gained as the UK is known as
largest financial center of world. Existing form European union will allow UK to re-establish the
country as truly independent nation by connecting with the other countries across world(Singh,
2018).
Consequences of Brexit -
The consequences of Brexit, is that it immediately impacted on the UK economy. The
Brexit was having a long term impact on the economy. They divorced the bills and movements
of the company. Many contributions to the EU were also made by Brexit. The company is single
market and contributes around 2% in the GDP of the country. The foreign direct investment was
also made the company. European experts across the university of bath and world pension
council (WPC) had argued for, bounding market volatility for short-lived, the long term
economic prospects for long term of Britain are high, notably foreign direct investment (FDI)
and country's attractiveness : "risk experts of country spokes that UK's economy will remain
beefy for exit from EU. The another effect of Brexit was on the property market. The stock
markets and currencies were also effected by this. Another majorly effected sectors were the
economy of business and financial institutions(Rajabi and Bolhari, 2015).
Effects of Brexit –
The Brexit have a negative effect on the UK as the trade will be bounded and tariffs will
be charged by the government that will be restricted the UK to trade with the EU countries. The
value of pound has also been decreased significantly which have an adverse effect on the
economy of UK. All the businesses, markets, shares, financial services are affected adversely by
this. The farmers are also demotivated as the no direct payment is rendered to them after the exit

of UK from EU and it is not prescribed whether they will be rendered with these services further
or not. This also bounds immigration from other countries to UK and UK' s residents
immigration to other countries. They can operate their business in free market and thus they will
not be obliged to trade with the European union member countries. The employment from other
countries are also bounded by UK government and thus skilled and trained employees from UK
will be employed in the companies, organizations etc(Vukotić, Aničić and Vukotić, 2017).
Future of Brexit -
The Brexit is now separated from the UK which means there will no influence of law in
UK over the Brexit and also there will be no influence of laws of Brexit over UK. There were
three agreements signed between UK and Brexit and the same are Withdrawal agreement bill,
Johnson new deal with the EU, PM election option. All this agreement changed the future of EU.
The relationship between both of them can improve if steps are taken from both sides. It will be
much difficult for the companies to amend the bill or pass a new bill. But it is very difficult to
revoke article 50 in which there are no chances that UK will be completely separate from the
European nations. If the are majority of then the article 50 will be revoked which is very
difficult. There are various important changes which are made and the same will result in
suffering with people and suffering from income(Hamilton and Webster, 2018).
Import Industry and Brexit -
Brexit has created many new opportunities for the means of trade with many of the new
industries other than the European union which aims for the development of the future trade
practices with many of the countries. Tariff and taxes varied which has provided a threat with
respect to Brexit. Many process delay will occur due to Brexit. Various other countries will take
an advantage regarding Brexit. Many of the trading business are at risk which can affect the
working culture of UK. Import is affected by the Brexit and many trade practices are difficult
with Brexit. Change in laws and legislation has made import conditions difficult which gave rise
to the crisis in the import industry as transportation cost will ultimately increase costs of the
imports in the market. Duty rates will change as the norms of trade will change. Import industry
will be paying extra for the trade practices which are under process(Raman, Garg and Thapliyal,
2019).
Advantages and disadvantages of Brexit

The advantages of Brexit are that it is helpful for country to experience immediate cost of
saving. On reason that Brexit was approved during the referendum time in which it cost for
membership to Europe unions. The savings will be helpful in creating sufficient reserves of cash
which would be useful in different ways. Where the disadvantage is that the elimination of
maternity leave, equal pay and safe workplace. Other advantage of the Brexit is that the
emphasis of train for Britain would be shifted, where other disadvantage that the perspective of
existence the gateway of Europe by Britain would be changed. Third advantage is that the
establishes sovereignty for Britain and the disadvantage is that it could create labor shortage
whereas the disadvantage is that it could prevent the sharing of information. Fourth advantage is
that the Brexit may cut down issues with forced immigration which are associated with EU
whereas the disadvantage is that it could reduce foreign direct investment that is received by
Britain (Popkova, Chechina and Sultanova, 2016).
Recommendation -
Due to the fall in pound the business of the TESCO had directly affected as the shares of
the company had adversely fallen down which would have a direct effect on operation and
functions of company. And thus the company is also bound to have no trade relationship with the
EU member countries which affects the business of TESCO across the world. The retention of
employees would also have affected due to this. Brexit had an adverse effect on the business of
the TESCO.
CONCLUSION
From the above study it is concluded that Brexit is the most riskiest step which is taken
by UK. The free market trade is bounded after the UK's exist-ion from Britain. Contemporary
business environment has major role in the change of UK's government into independent
government and rules & regulation which gone to be done for the development and growth of the
United Kingdom. Brexit plays significant role in growth of the UK's economy. Somehow this
may also have a negative impact on the Trade and employment of the UK. In future the overall
result will be defined after the implementation and acceptance of agreement by the MPs of
parliament. Somehow now s days it has an adverse effect on the economy of UK as the pound
value has been decreased its targeted value from last 30 years.

REFRENCES
Books and Journals
Popkova, E., Chechina, O. and Sultanova, A., 2016. Structural and logical model of
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