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Running head: IMPACTS OF BREXIT ON BUSINESSIMPACTS OF BREXIT ON BUSINESSName:Academic Institution:Date:
IMPACTS OF BREXIT ON BUSINESS2IntroductionBrexit took place on 23rdJune, 2016, where a referendum was conducted and the UnitedKingdom chose to walk out from the European Union. The people opted and made decision thatthe advantages of being a member of the integrated monetary organization do not outweigh thecharges of free movement of migration. Brexit, is a dub for Britain exit from the EuropeanUnion. After negotiations and in-house arguments, the European Union and the United Kingdomunlocked the segment of the Article 50 Brexit process (Runciman et al., 2017). Initially therewere fears and warnings about the action from other member states; however, currently thingshave resumed to normal and economic pointers have enhanced. To determine or understand thecurrent and future consequences, a few things have to be checked and looked up on in the longrun.Positve Effects: Reduced Business CompetitionTo the United Kingdom, they will again make illegal the complimentary flow of peoplefrom the European Union. In this case, it means the level of business competition has gone downsince the movement is regulated especially on the non UK citizens leaving only the locals to takepart and control a better section of the business. This is an indication that many businesses willhave less competition thus making them to make maximum profit especially by the small scaleretailers.Security StabilitySimilarly, several things triggers the people to vote for Brexit, but the main concern whymajority voted was the continuous increase of the refugees from the Middle East and wereconsidered as threats to peace stability (Block-Lieb, 2018). One of the major challenge and
IMPACTS OF BREXIT ON BUSINESS3among the main reason for voting Brexit was the continuous of insecurity that was increasing inmany occasions, for instance, the London marathon terror attack and some few outside the UKsuch as France and Belgium. To curb the situation, Brexit was deemed fit to control themovement of refugees who coming through other EU member states to the UK; therefore, Brexithas stabilized the security for businesses by controlling such illegal movements.Increased Revenue VolumeSince UK was a member state of the EU, there is a remittance that was being submittedafter every certain duration for subscription. However, given that they are now non-member, thefunds are being used for other purposes such as boosting the SMEs within to increase revenue.Again the UK will be capable to tax devoid of the European Union principles.Negative Effects: Slowed the growthAs reported by the Treasury Chief for UK, Chief Philip, the economic has gone down by2.4 percent this year (2018) and it is being projected to go down further to 1.9% in 2019 (Polgár,2016).Again, there is a possible trouncing of Britain’s tariff-free trade position in the midst ofother European members’ states. These tariffs enlarge the price tag of the exports, thus buildingthe British organizations higher-priced and a lesser amount of competitive. The rate of import isincreased thus increasing the price and reduces the living standard for the citizens. Besides, therewould be no longer being the support for corporations that apply it as an English language focalpoint of admission to the EU economy. For this case, several offices are currently constructed tocreate space for other departments that were in other member states. The United Kingdom as wassuggested would lose benefits of European Union state-of –the art technologies. The EU allowedtheir members and grants environmental safety, research, and growth, and energy.