Impact of BREXIT on Wholesale and Retail Industry of UK

FUNDAMENTALS OF
ECONOMICS

TABLE OF CONTENTS
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REFERENCES................................................................................................................................8

MAIN BODY
Economics is defined as the branch of knowledge which is related with the level of
production, consumption and transfer of wealth among the participant of an economy. For any
country to be successful the most essential aspect is to manage the economic condition of the
country in such a manner that it leads country in direction of growth and development. In the
similar context currently the biggest economic issue faced by UK economy is the problem of
BREXIT. The present essay will outline the impact of BREXIT over the wholesale and retail
industry of UK three areas that is motor trade, wholesale and retail.
BREXIT is the withdrawal of United Kingdom (UK) from the European Union (EU) and
from European Atomic Energy Community (EAEC) as well at the end of 31 January 2020. There
are many different countries in EU but UK decided to leave the EU and after months of
negotiation finally the deal happened. UK is the only and the first country to leave the EU after
being the member of EU for 47 years. Many of the studies and economist have shown that the
effects of BREXIT will create a damaging and long lasting impact over the country and many of
its industries as well. The major reason pertaining to this fact is that in EU there were many
different countries its members and because of BREXIT trade relation of UK was affected by
other EU countries. Hence, as a result of this other EU countries may reduce the trade with UK
and this in turn will result in decrease in the economic condition of UK.
Due to BREXIT the retail industry is the one which has been affected the most. This is
particularly because of the reason that UK economy comprises majorly of the retail companies.
There were many challenges and problem faced by the retail companies (BREXIT: Implication
for retail, 2021). The major challenge is the impact over the trade of these companies. The major
reason pertaining to the fact is that EU was the UK largest market for export of food and non-
alcoholic drinks. Due to BREXIT this trade has been affected as the relation between both EU
and UK have been affected to a great extent. In addition to this, another major challenge was the
imports was also affected from EU this was pertaining to the fact that because of the UK leaving
EU the trade with EU became more expensive and delivery time also increased. Hence, this
affected the business of retail companies in UK in a great manner (Bloom and et.al., 2019).
In addition to this the supply chain was also a major issue which was affected because of
the BREXIT. The major reason pertaining to this fact is that currently product mover freely
across the border among UK and other EU member states and no tariff was imposed. But after