Impact of Brexit on UK Business Organizations

Explore the consequences of Brexit on UK business organizations, from challenges like limited resources to benefits like easy trade policies and technological advancements. Understand how Brexit has paved the way for globalisation and potential growth in the UK economy.

Summary
United Kingdom earlier a part of European Union is a well-known country for its second-highest
contribution in the EU’s budget. At the time UK being a member of EU is regulated by the laws
and regulations designed by EU and with the total control in the hands of EU, Britain witnesses
that the business organisations are facing complication in the way of progress as the EU do not
allow to trade with other countries and also not allow the organisation to extend its business
operations in the countries that are not the part of EU (O'Reilly, et. al., 2016).
For the removal of restrictions and hurdles from the way of business progress, United Kingdom
decided to withdraw its membership from EU. The decision of withdrawal from the membership
results in the formation of contract and it is known as Brexit as it defined that exit of Britain
from EU. After the withdrawal, it has been assumed that the business organisation can move on
the path of progress but it brings severe consequences for the business organisations such as lack
of supply of limited resources and low capital available with the business. Along with the severe
challenges, Brexit brings various benefits also such as easy trade policies, increasing relationship
with other countries, and imports of technology at best rate. The benefits brought by Brexit
results in the easy trade that allows UK to identify other exported of resources at best rate so that
the production and manufacturing process can be strengthened again in the presence of low
capital. Moreover, the separation from EU allows UK to import technological advancements
such as broadband facility and low carbon production. Both the technology results beneficial by
pushing the organisations on the way of progress as the broadband facility enable the
organisations to widen its business operations and have a great control over its management
(Bbc, 2017). Further, the low carbon emission technology also helps the organisation to
manufacture in a manner that results in less wastage of resources and high-quality production
that increases the demand for organisation in the world.
With the help of Brexit only, the globalisation has become possible as otherwise UK will not be
allowed to trade with other parts of the world. With the globalisation, the revenue collected by
UK either from foreign direct investment or business units operating outside the country has
increased significantly. It has been forecasted with the help of growing GDP trend that UK will
gain an identity of the fastest growing economy in the world by 2020 that will continue to grow
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by 2050 with the increasing rate (Wintour, 2016). All of the rises is in GDP has taken place
because of the trading and business process and thus it has been concluded that UK’s business
organisation holds a great potential to extend its market by 2020 and the organisation can be the
world’s leading organisation by eliminating all the barriers and challenges considering the
situations prevailing in the country.
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References
 O'Reilly, J., Froud, J., Johal, S., Williams, K., Warhurst, C., Morgan, G., Grey, C., Wood, G.,
Wright, M., Boyer, R., Frerichs, S., Sankari, S., Rona-Tas, A. & Galès, P.L., 2016. Brexit:
understanding the socio-economic origins and consequences. Socio-Economic Review, Volume
14, Issue 4, pp. 807–854.
 Wintour, P., 2016. British-EU relations likely to be resolved by 2020, says Liam Fox. [Online]
Theguardian. Available at: https://www.theguardian.com/politics/2016/jul/26/british-eu-
relations-to-be-resolved-by-2020-says-liam-fox [Accessed: 11 January 2018].
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