Impact of Brexit on Businesses Assignment
6 Pages1362 Words156 Views
Added on 2020-06-04
Impact of Brexit on Businesses Assignment
Added on 2020-06-04
ShareRelated Documents
Impact of Brexit onBusinesses of UKIssue date: 18 July 2017Impact of Brexit isvery large on businesscompanies of UnitedKingdom. Splitting of UKform European Union isroiling the business world.It is also sending variousshocks to the businesses ofother countries. Brexit isdamaging business of thecountry as UK is makingnew policies andprocedures.These all rules are requiredto be followed byorganisations which canimpact the growth andrevenue. Businesses in theUK are feeling pain ofeconomic disruption whichis caused by leaving EU.A research says that manyof the business leaders areconcerning over Brexit.Thousands of jobs will bein danger due to impact ofBrexit. Various consultantsand economics havepublished reports onimpact of new policies andprocedures on businesses.The macro-economicimpact of Brexit: usingthe CBR macro-economicmodel of the UKeconomy1
Economy of theUK gets large part frombusiness revenues.Businesses after thechange in UK policies willnot be able to contribute tothe country's economy.Currency of the region issuffering and it is assumedthat country might go intoeconomic recession.Economy of the Britain hasbowled down since theBrexit has came intoeffect. Exporters in countryare getting benefits fromthe new policies in UK.Whereas importingbusinesses costs has beensoared which can causerise in inflation. This allcan impact living standardof the people in country. Itis also sending variousshocks to the businesses ofthe countries. Impact on businessinvestment.(Source: The articlesjournal. 2017)What can fixitafter Brexit? Anempirical studyof theeconomic effect on UKtrade, following an exitfrom the EuropeanUnion Investment inbusiness is also sufferingdue to Brexit vote, asorganisations are gettingaffected by uncertaintieswhich is are falling overUK's future mercantilismarrangements withEuropean Union.Businesses in the countryare also facing threats andbarriers of indirect taxesand custom duties.Investment in businesseshas fallen down by 0.9 percent in the final quarter ofthe year 2016. Level ofinvestment in business isassumed to reduce by 25percent in the year 2019. itcan damage futureproductivity and growth ofbusinesses in the country.British consumers are notconsidering retailbusinesses which isaffecting gross domesticproduct of the region afterBrexit. Retail sector of thecountry is importantelement for consumptionwhich has fell down by 1.3percent in the first 4thquarter of the year 2017. Itis the large serial fall since2010. It is also expectedthat this fall will getworsen day by day in thecountry. Major impact ofBrexit has been seen onfunding for businesses.Brexit is forcing Brusselsto start its own financialservices and this will causeBritain to lose its clump oftrade with European2
Union. Banks are movingtheir financial supportform education in UK aswell as in the localbusinesses of the country.The consequences ofBrexit for UK trade andliving standardsVarious policies of thetrade and businesses in thecountry has changed afterthe Brexit. Government ofthe country is levyingmany direct and indirecttaxes on the business firmsrunning in the region.Products of the businessorganisation are havingprices inclusive of withtaxes which are gettingnon-affordable for thepeople. It is affecting thegrowth of businesses.Enterprises in the nationare also facing threats andbarriers of indirect taxesand custom duties. Brexitin the country is alsoaffecting the flexibility offirms. Indirect taxes onproduct are very highwhich includes VATwhich is the major part ofcountry's revenue. Countryin now changing its VATpolicies on goods andservices of the businessorganisation. Thisincreased value added taxis increasing tax burden onthe firms. Since policieshave been changed incountry’s businesses nowhave to follow these rulesand regulations which canimpact their growth andproductivity. Traderelation of country isnegatively impacted due toit. The positive impact ofBrexit is that businessfirms now have to paylower which is the only bigadvantage of the Brexit.(Source: Reaction toBrexit. 2017)BREXIT: The impact onthe UK and the EUChanged policies regardingbusiness conductionoperations in the countryare increasing cost ofadministrating a business.Government of the countryis currently having anti-taxevasion policy. Existingpolicies are allowingmultinational firms toexploit ambiguity in thecurrent tax system.Country is now makingstrict rules for the businessorganisations which arecarrying their businesses3
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
Brexit is withdrawal of UKlg...
|6
|952
|51
ECO 202 Principles of Microeconomicslg...
|18
|3783
|146
[PDF] Open Economy Macroeconomicslg...
|11
|2109
|142
Brexit Impact on World Economylg...
|12
|1572
|282
BREXIT: Impact on HR practices in British firms as a consequence of Brexitlg...
|15
|4758
|64
Macroeconomic Impact of COVID-19 Pandemic for UKlg...
|9
|1796
|1