Impact of Brexit on UK Businesses: Exports, Employment, and Foreign Investment

Table of Contents
1. Explain three areas of business’s functioning that will affected by Britain
leaving the EU?.........................................................................................................3
2. Explain what failing businesses could do to increase productivity, sales or profit
by using social media?...............................................................................................5
3. Explain what effects climate change could have on global business?.................7
References.................................................................................................................9
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1. Explain three areas of business’s functioning that will affected by Britain leaving the
EU?
On June 23rd 2016, a revolution came in the history of Britain, when Britain decided to leave the
European Union. As a result, immediately after the decision was declared, the pound fell to its
minimum value since the year 1985. Till now, UK has been the number one choice of the
entrepreneurs and is often considered one of the best countries in the world to start the new
business. But the decision of Britain leaving the European Union could bring some unexpected
changes in the business’s functioning of UK.
There are many predictors whose predictions about the future business areas of Britain are
positive and who are in favor of Brexit. But there are also some of the predictors according to
whom the decision of leaving the European Union is the biggest mistake of Britain and this will
seriously affect the business conditions of UK.
Therefore, it is very important for Britain to understand how the Brexit will impact the
businesses in the UK and how it is going to maintain its economy after leaving the European
Union. Most of the companies who have invested large amount in the businesses of Britain are
fearful of the consequences of Brexit and are therefore reassessing their investments in Britain’s
businesses. Let us now take a look at some of the business’s functioning of Britain that will have
an impact of Brexit:
 Impact on the UK Exports: According to the reports, the amount of the goods exported to
the rest of the EU by Britain in the year 2015 was worth 133 billion pound and this amount is
almost equal to the half of the total goods that are exported globally. If there is no new trade
agreement between EU and Britain, then it is expected that Britain will have to bear a loss of
around 4.5 billion pound per year. As a result, the export businesses of UK will be greatly
affected as their costs will take a great hike. This will make the business market of Britain
less competitive across the globe. If the Britain decides to lower its prices, then it will have to
suffer lower profits. Therefore, it is expected that Brexit will lower the UK’s export business
by 8.8% approximately.
 Impact on Employment and Labor: According to the reports, the number of job seekers
looking for job outside Britain has increased tremendously after the decision of Britain
leaving the EU. The unemployment rate of Britain is expected to increase by the rate of 6.5
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