The Consequences of BREXIT for UK Trade and Living Standards

Running head: PROJECT DISSERTATION
The consequences of BREXIT for UK trade and living standards: Project Dissertation
Name of the Student
Name of the University
Author’s Note

1PROJECT DISSERTATION
Acknowledgement
Professional research on this topic is one of the most identifiable and enriching experience off
my life ever. I think after successful completion of this research my knowledge base and research
skill will automatically enhance a lot. During the research study, I have obtained sufficient
knowledge about the consequences of BREXIT considering the standard living trade of UK. In
order to gather information for conducting this research my supervisors helped me a lot. I would
like to thank my co workers and supervisor for supporting me throughout while collecting and
analyzing the key research findings. Not only this but also I would like to thank my friends
because they also helped me lot for gathering secondary data in terms of journals and articles.
Moreover I would also like to thank the other professionals who helped me a lot while
conducting survey in the retails industries. I have got inspiration and support as well from these
above mentioned people for helping e throughout the research study.
Thanks and regards
Yours Sincerely,

2PROJECT DISSERTATION
Executive summary
The European Union is considered as the largest trade partner of the UK. Approximately a half
of the UK’s trade is with the European Union. The membership of EU minimizes costs in trade
between the UK as well as the EU. Hence, Leaving the EU would make lower trade between the
UK as well as EU as there is higher tariff as well as non-tariff barriers to trade. Moreover, the
UK would gain advantages less from future market integration within the organization. This
paper is focused on both the positive and negative impact of BREXIT over the trade and the
living standards of United Kingdom. It has been found that the referendum of United Kingdom is
able to shape the relation of the country along with one of the largest European Union (EU). In
order to conduct the research work a vast investigation has been done while choosing the most
suitable research methodologies in terms of research philosophy, approaches, data techniques,
data collection and ethical consideration also. The top destination of export and origin of imports
are measured with the help of statistical information. The standards of both United Kingdom and
European Union will help to shape the familiar guidelines principles to make sure that all the
legal order is accordingly followed. In order to conduct the research work, the plan changes in
United Kingdom are also illustrated. For this research work both the primary and secondary data
are gathered and all current secondary information are considered to demonstrate the research
resultants.

3PROJECT DISSERTATION
Table of Contents
1. Chapter One: Introduction...........................................................................................................5
1.1 Introduction of the research topic..........................................................................................5
1.1 Background of the research...................................................................................................5
1.2 Research Aim.........................................................................................................................6
1.3 Research Objectives...............................................................................................................7
1.4 Research Questions................................................................................................................7
1.5 Rationale of the Study...........................................................................................................8
1.6 Structure of the Study............................................................................................................8
1.7 Summary................................................................................................................................9
2. Chapter Two: Literature Review...............................................................................................10
3. Chapter Three: Research Methodology.....................................................................................21
3.1 Introduction..........................................................................................................................21
3.2 Method Outline....................................................................................................................21
3.3 Research Onion....................................................................................................................21
3.4 Research Philosophy............................................................................................................22
3.4.1 Justification for Selection of chosen philosophy..........................................................24
3.5 Research Approach..............................................................................................................24
3.5.1 Justification for Selection of chosen approach.............................................................25
3.6 Research Design..................................................................................................................25
3.6.1 Justification for Selection of chosen design.................................................................27
3.7 Data Collection Process.......................................................................................................27
3.7.1 Data Sources: Primary and Secondary.........................................................................27
3.7.2 Data Techniques: Qualitative and Quantitative............................................................28
3.8 Ethical Considerations.........................................................................................................29

4PROJECT DISSERTATION
3.9 Research Limitations...........................................................................................................30
3.10 Time Horizon.....................................................................................................................31
3.11 Summary............................................................................................................................32
4. Chapter Four: Analysis and Discussion.....................................................................................33
4.1 Introduction..........................................................................................................................33
4.2 Major Consequences of BREXIT in UK Trade and Living Standards: Findings and
Implications...............................................................................................................................34
4.2.1 Free Internal Market.....................................................................................................34
4.2.2 Affected countries such as Belgium, Netherlands, and Germany................................34
4.2.3 Future UK trade flow....................................................................................................38
4.3 Estimation of BREXIT Consequences in UK Trade and Living Standards: Findings and
Implications...............................................................................................................................39
4.3.1 Increment of Trade Cost...............................................................................................39
4.3.2 Influence on Transfer Pricing.......................................................................................41
4.3.3 Reconsideration of Locations for Supply Chain and Value Chain...............................42
4.3.4 Future UK Trade Flow..................................................................................................43
4.4 Effect of BREXIT on Migration, Foreign Investment and Regulation...............................44
4.4.1 Financial analysis..........................................................................................................47
4.4.2 EU Membership impact on FDI...................................................................................49
4.4.3 Changes in FDI for impacting on UK incomes............................................................50
4.5 Analysis Summary...............................................................................................................51
5. Chapter Five...............................................................................................................................53
5.1 Conclusion...........................................................................................................................53
5.2 Recommendations................................................................................................................57
References......................................................................................................................................59

5PROJECT DISSERTATION
1. Chapter One: Introduction
1.1 Introduction of the research topic
The study aims to state the impacts of BREXIT over Trade and living standards in UK.
Outcome obtained from EU (European Union) membership in UK’s referendum has potential for
shaping up country’s relationship along with largest trading partners in EU membership.
Membership of EU is likely to reduce the cost for trading between UK and rest of Europe
(Dhingra et al. 2016). In obvious way, between EU members, the ‘customs union’ exists and this
means that multiple tariff barriers are removed within EU. The removal of tariff barriers allows
free trading of goods and services (Wadsworth et al. 2016). However, in equally important way,
the reduction of trading cost is identified as lessening non-tariff value barriers that resulted into
EU’s continue efforts for creating independent and single market in Europe.
1.1 Background of the research
As per UK background, the non-tariff barriers incorporate wider range of measures for
increasing cost for trading such as threats of anti-dumping, checking rule of origin, border
controlling, and the differences among the cross countries over various regulations for the
standard of products and their safety as well. The trade barriers reductions can increase the
trading value between EU and UK with these aspects. Before, in 1973, UK is a part of the
European Economic Community, value-basis one-third of UK trading was connected with EEC
(Kierzenkowski et al. 2016). In 2014, other 27 EU trading members include 45% exporting from
UK and 53% exporting from UK is considered under other countries’ imports. Exports from EU
includes 13% of national income and higher trading values can provide benefits to UK customers
throughout lower price ranges with accessing better goods and services. To some extent, the UK

6PROJECT DISSERTATION
workers and business entrepreneurs benefit upon from new export opportunities for leading to
high value sales and profits in businesses.
The export opportunities allow UK for specializing over industries so that it can acquire
competitive advantage. Along with the sales and service channels, the trade raising outputs
increases income and improves living standards of UK (Dhingra et al. 2016). The standards
provide effects over trading and this is understood over several other countries. In recent
decades, the trade studies revealed that there are bigger effects of BREXIT in UK living
standards and trading value.
1.2 Research Aim
This particular study has broad aim for stating impacts of BREXIT over Trade and living
standards in UK. To achieve proper implications and outcomes, the consequences of BREXIT
will be estimated considering two scenarios such as optimistic and pessimistic over the trade.
This scenario consideration is completely based on secondary findings and study related
outcomes. Furthermore, the dissertation aims to provide secondary study analysis and findings
about future trade agreements that are related with UK living standards. This findings should be
able to provide alternative trading procedures that is related to UK trade and living standard. The
major impacts on migration, foreign investments, and regulation will be discussed in this study to
depict BREXIT impacts over global economy.
Based on the background, the primary implication is stated as higher productivity and
innovation can have major impact on other routes. The broad question is stated to be: how
BREXIT can cast its impact on trading in UK and to find out what impacts BREXIT have on UK
incomes? This dissertation is based on secondary study and several studies reveal that BREXIT

7PROJECT DISSERTATION
has impact on UK living standards and this study aims to estimate the degree of influence that
BREXIT cast upon UK living standards.
1.3 Research Objectives
Depending on the stated aim of research topic, the research determines specific objectives
and relevant research questions in later sections. Primary research objectives are included as
following:
1. To identify the major impacts of BREXIT over Trade and living standards in UK
over global economy aspect
2. To identify appropriate ways for determining the impact scoring for BREXIT
across trade and living standards in UK
3. To identify effects of BREXIT on tax regulations, foreign investments and
migration
Identified objectives from the study can provide detailed outline over the dissertation.
The objectives can formulate specific research questions so that study can achieve a proper
format over the study.
1.4 Research Questions
The set of designed research questions for this specific research topic are as follows:
a) What are the major impacts of BREXIT over Trade and living standards in UK
over global economy aspect?
b) How could the appropriate ways be determined the impact scoring for BREXIT
across trade and living standards in UK?