Evaluating the Potential Impacts of BREXIT on Business

Discuss and Evaluate the Potential Impacts of BREXIT on Business
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Introduction
The memorable referendum for the BREXIT was effectively passed on June 23rd on 2016 when it
was voted in the favour of Great Britain to move out from European Union. With this voting, the
Pound fell to its lowest since the year 1985. Being considered as one of the best places to
conduct the business, leaving EU has changed the scenario in the business industry of UK. It has
been found that since the decision has passed many businesses have to face various issues
especially the foreign businesses. The impact that has been identified in these businesses can be
identified into two major aspects; negative and positive (Ports & Forte, 2017). The report
provided below would be presented on identifying the impact of BREXIT on businesses that are
operating in UK.
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Findings and analysis
In this segment of the report, the positive and negative impact of the BREXIT on the companies
that are operating in UK or have their business markets there would be analysed. These impacts
would be studied taking into consideration various changes and factors in the economy.
Positive Impacts
The issue of overcrowding of nationals has been faced by the economy of UK from the
beginning. Due to this, the locals are not able to get the jobs as these places have already been
filled by foreign staff. Thus with the implementation of BREXIT, this issue would be solved in
an effective manner. The bill will not only help in bringing back the talent to the economy of the
country but will also help the HR department of the companies to find the right an suitable
candidates for the job as well (Dhingra et. al., 2016). This can further help in dealing with the
issue of high rate of unemployment in the country as well.
Currently, there are two currencies that are legitimately in use in UK i.e. Pounds and Euros. Due
to this the citizens and businesses generally have to convert one currency into another. The
implementation of BREXIT will help in keeping one currency in the flow and it will help in
getting rid of the confusion created from two currencies in use. This issue not only hinders the
business transactions but also causes a delay in operations as well. With the removal of this
barrier, the development of the businesses would be ensured in a rapid manner. It will also help
UK to enjoy the benefits from the independent monetary policies.
The most significant and the positive impact that would be enjoyed by the citizens and
businesses of UK is the lowering down of taxes. Being the biggest economy of EU, currently, the
country pays an amount of 7 billion pounds in order to keep its membership in the EU. After
successful implementation of BREXIT, the country would not have to spend this sum of money
which will help in saving a large amount of tax (Busch & Matthes, 2016). This amount can be
further used in economic and infrastructural development of the company it will also help the
businesses to get hands on the developed resources as well.
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