Economics of International Business Management : Assignment

ECONOMICS OF
INTERNATIONAL
BUSINESS MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Context of the news ....................................................................................................................1
Current problem /scenario ..........................................................................................................1
Justification of the Study.............................................................................................................2
Importance of this analysis.........................................................................................................3
Economic indicators ...................................................................................................................3
Approaches to dealing with the problems...................................................................................4
Academic studies supporting the case study .............................................................................4
Application of data to Models ....................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Brexit is the situation in which the UK is withdrawal from the European union. In This
report it will include the effect of Brexit on the British economy through the use of various
articles ton identify the information about the consequences which are being Faced by the
economy due to exit of UK from European union. In this report it will provide information about
the changes which will take place due to exit of UK from European union as the economy will
have to face a great downfall due to Brexit as it will lead to reduction in the per capital income of
the country.
ECONOMIC EFFECT OF STALLED BREXIT DEAL
Context of the news
Brexit has led to the economic downturn which has affected the economy in negative
way. It is identified through the article "What effect has Brexit had on the UK economy?" that
the Brexit will reduced the GDP of the country and also the inflation will be higher. Due to the
Stalled Brexit the public borrowing will rise which will lead to the high cost of borrowing. The
Bank of England found that the business investment has slowed sharply. Also, It has show the
impact of Brexit on the employment opportunities because it shows that the Brexit will lead to
increase in the unemployment which will reduce the economy growth. Another article "UK
economy ‘stalls’ over Brexit and global economy fears" provided in formation about the UK
service sector which shows that the UK economy is rise of stalling due to Brexit. It shows that
the service sector has been greatly affected due to uncertainty caused by Brexit. It is been
identified that the growth of 0.1% as opposed to that the service sector before Brexit was the
greatest largest sector that contributed to the economy.
Current problem /scenario
The Current problems regarding Brexit as identified by the Articles is that it has lead to
reduction in employment opportunities because with the vote out of UK from European union
will increase the unemployment in UK that will affect the economy significantly. The problems
show that Brexit has lead to the economic downturn for the UK which has increase the
consequences. Brexit will make the financial market more sensitive it will reduce the per capita
income for the UK and also the economy will be devastated due to the Brexit impact. UK is in
recession due to Brexit which has lead to increase in the inflation and the reduction in the GDP.
1

From the above graph it identified that the UK economy is devastating due to the impact
of Brexit which has slow down the GDP and shows that the Growth of the UK economy has
been slow down with effect of the Brexit. It shows the In 2018 the growth rate of UK was more
as compared to 2019. The UK will be voted out on 29 march which means the year 2019 will be
more risky and lead to recession for the UK economy.
Justification of the Study
This study is based on the Effect of Brexit on the UK economy which is discussed
through the help of Articles. The information for the topic is selected from the following
sources :
 What effect has Brexit had on the UK economy?
 UK economy ‘stalls’ over Brexit and global economy fears
This report has identified the information for the topic from this sources as it has
discuses about the problems which has been faced by the UK economy due to the impact of
2
Illustration 1: UK growth slow down
( Source : What effect has Brexit had on the UK economy, 2019)