Impact of Brexit on UK Business

This study examines the positive and negative impact of Brexit on UK businesses. It explores the changes in trade relations, supply chain, regulations, and more. Find out how Brexit affects the competitiveness and profitability of UK businesses.

Inquiry project

ABSTRACT
Present investigation is taken in to consideration on impact of Brexit on UK
business positively and negatively. The present study examines the benefits and the
issues that businesses of UK face after exit if Britain from EU. For knowing about it in a
detailed manner, present research consist literature review over the positive and
negative impact of Brexit. For data collection, primary method is mainly used.

Table of Contents
ABSTRACT................................................................................................................................................2
INTRODUCTION......................................................................................................................................4
Background of Research.....................................................................................................................4
Aim..........................................................................................................................................................4
Importance of topic...............................................................................................................................4
Concepts and Terminology..................................................................................................................4
Outline structure....................................................................................................................................5
METHODOLOGY.....................................................................................................................................6
Data collection.......................................................................................................................................6
Sources of Information.........................................................................................................................6
Primary or secondary...........................................................................................................................6
Qualitative or quantitative or both.......................................................................................................7
MAIN BODY..............................................................................................................................................8
Literature review....................................................................................................................................8
CONCLUSION........................................................................................................................................11
LIMITATIONS..........................................................................................................................................11
REFERENCES........................................................................................................................................12

TITLE: How Brexit would affect UK business positively and negatively.
INTRODUCTION
Background of Research
Brexit is withdrawal of United Kingdom from European Union. Following UK-wide
referendum in June, 2016, under which 52% voted to leave and also 48% to remain in
EU. Result of 2016 United Kingdom European Union membership referendum provoked
the considerable debate as to factors which contributed to vote in favor of the
withdrawal with the different explanations that being put forth. This has a significant
effect on the social and economic characteristics of the region (Baker, 2017). The effect
on businesses was also affected by the income status of people, which turn influenced
their buying behavior that contributes to a significant drop in company profitability. In
addition, the Brexit case has also changed the trading relations that are carried out with
other countries as a result of their membership with the EU a majority of the trade flow
with the EU going via a Free Trade Agreement.
Aim
“To determine positive and negative impact of Brexit on UK business.”
Importance of topic
Main importance of the topic is to get the information about the Brexit and its
positive and negative impact of Brexit on UK business. Through conducting present
investigation, researcher can able to get knowledge on the specific subject area. This
helps to increase knowledge and research abilities of an investigator to conduct similar
types of research in future (Bloom and et. al., 2019).
Concepts and Terminology
The terminologies considered in research are:

Brexit- In this, Negotiation are under the way EU and UK governments to decide
how movement of services, people and products across EU or UK borders will be
process that following Brexit. For the businesses of UK, alls it will change to lesser or
greater degree following Brexit (Bloom and et. al., 2018).
Outline structure
Abstract- This part comes first in research but also written in last. It is summary
of the whole report that is going to be conducted. This included aim, methodology used,
main findings and conclusion.
Introduction- It is primary chapter of research and considered aim, importance,
concepts or terminologies used.
Methodology- This chapter considered about the different methodologies used
in conducting the project. It includes data collection methods, sources of information,
research methods, and benefits of chosen data collection methods (Bloom and et. al.,
2017).
Main body- It includes about the information regarding the specific subject area
in a detailed manner.
Conclusion- This is the last chapter in research that included information about
the whole project and also the findings.
Limitations- It is related to the issues which faced through investigator while
conducting the information from using different sources (Crowley, Exton and Han,
2019).

METHODOLOGY
The research methodology helps a researcher to choose the most suitable
methods or strategies to undertake an experiment in order to produce the best possible
outcome. This also helps to provide guidance on how to execute the investigation
towards the achievement of the study objective (Dhingra and et. al., 2016).
Data collection
In order to accomplish the study objectives and aim, information is collected from
many different sources as there are two types of data collection sources, such as
primary or secondary. These are mainly used for a specific study. Secondary sources
are used to gather information for the conduct of the present research. It is because it
supports the presentation of information which is already collected and released from
validated sources, which supports the presentation of a clear review of the information
available to determine the correct result (Farnsworth, 2017).
Sources of Information
In this present investigation, the secondary sources will be used such as books
and journals.
Primary or secondary
In conducting present research, secondary data collection method will be used
because it offers credible and detailed information on the Brexit would affect UK
business positively and negatively (Hatzigeorgiou and Lodefalk, 2016). Advantages and
disadvantages of the secondary information:
Advantages Disadvantages
 Since it is primarily focused on data
from past research already existing,
secondary research can be done
faster and at less expense.
 Detailed information on its needs
may be challenging for the
 It may be difficult for the researcher
to obtain detailed information about
requirements.
 Less accuracy.

researcher.
Qualitative or quantitative or both
Quantitative and Qualitative are two different methods of research. The
quantitative analysis gathers knowledge surrounding feelings, conduct and meaning.
This allows researchers to better understand complex ideas, cultural patterns and social
experiences. Such research method is helpful in exploring how things have happened,
how events are interpreted and how actions are explained. Qualitative research is, on
the other hand, a number of types of study, typically based on unstructured data or non-
numerical data analysis methods. The attribute criteria are abstract. They cannot be
evaluated or estimated unless they can be estimated about the fact that they reflect
(Jones, 2017).
There will be qualitative research method used because it helps to collect
information with many concepts or clarity to facilitate readers' understanding of the
specific subject area.

MAIN BODY
Literature review
Every sector that operating in United Kingdom is getting impacted from Brexit as
it develops the influence over the manpower issues and economy. Some sectors are
more affected than others, for example, financial services, but the most important
changes are those who trade around the world. Companies with regional suppliers or
consumers in Europe will be affected, while the lack of access to the existing free trade
agreement and customs barriers will impact exchanges with non-EU countries. The
truth is, the EU is the largest lender to British businesses and that is all the more
complicated with Brexit. According to opinion of Keir Thomas Bryant (2019) Export of
United Kingdom businesses may take hit because of the high tariffs and costs. It can be
seen to impact supply chain. As UK separated from EU, The challenge here is
untangling the government as well as parliament's regulatory framework. By changing
the way law is approached, Brexit affects companies immediately. Process will involve
translating existing EU law into UK law and courts will have to consider using decisions
already taken at the European Level. On the basis of of David Lowe, Bernardine Adkins
and Kieran Laird (2020), Wvery business is mainly facing various challenges and
consists £4.5 billion a year. Some negative impact of Brexit on UK businesses given
below:
Supply chain- real risk is caused by Brexit, which raises operational costs and
supply chain delays. In turn, the costs of materials required to produce, process or
supply products or services, have affected the companies. All of these are increasingly
affected by the rise in inflation (Kumar, 2017).
Regulation- Brexit has a potential enormous impact on regulation. In many ways
the United Kingdom is primarily based on EU principles and the British legislation is
likely to continue to adhere to them (but not to form policy behind it).
Customs/border tariffs- Upon the exit of the EU, cross-border activities have
become more and more affected by its legislation or norms. In addition, this affects the

way UK businesses conduct their customary practices. The potential customary
implications that change the business will therefore become essential for importer and
exported (Norton, 2016).
There are some risks faced recently by UK companies that have a great effect on
business but such risks that give those who seek to capitalize on them new
opportunities. That is because currency fluctuations will benefit businesses and new
business partnerships would be required for companies to pursue in order to decide
how much they can leverage.
According to Kevin Amess (2019) In year 2015, UK exported products to rest of EU that
represents nearly one half of world goods exports, worth £ 133 billion. This is forecast
that if the UK leaves the EU without new trade agreement with EU, this will experience
loss of around £4.5 billion a year. This could have been a big hit for UK export firms, as
their prices are increasing as the tariffs increase. In the EU and internationally, it would
lead to UK businesses becoming less competitive. However, with the increase of the
tariffs, which turn affect competitiveness of the UK businesses in the EU and
international economies, the rate for export venture will also rise within the UK. Ford,
2016, meanwhile, says that number of the migrants searching for jobs outside the UK
needs to increase because of Brexit. Britain's unemployment rate is expected to
increase by 6.5% due to the contraction of 500,000 jobs (Simionescu and et. al., 2017).
There are presently 2.1 million European immigrants working in the United Kingdom,
according to the recent figures. If those EU workers leave the United Kingdom due to
Brexit, then a huge gap will emerge between the demand for qualified supply and
employees that could result in the UK having the ability to hire international talent. They
all play an important role in organizations operating from either side of the country, i.e.
less qualified employees remain in front of companies to make sure they are running
business efficiently. On the other hand, the inflation rate also has a significant effect on
the competitiveness of the company because of the acquisition potential of consumers
in the UK.
On the other hand, it also has a positive impact on the country, which means that
it does not have any contribution to the common budget. It spends primarily £ 13 billion

in the budget of the European Union and saves UK government from this payment
annually by leaving the EU. Brexit is often seen as risk but it offers new opportunities for
those who want to benefit from it. Currency volatility will benefit some companies and
new trade relations require to be investigated. Other than this, there are some positive
impacts of Brexit on UK businesses mention below:
Free to make trade agreements- The UK is pursuing free trade deals for China
for billions of pounds. China would profit from greater access to the manufactured
goods and investments of UK, Brexit, together with other UK products, will further
reduce barriers for the UK services industry such as banking and insurance. United
Kingdom has been voted to leave European Union, this has opportunity to make the
business related deals with other countries. Like Australia and China are moving
already to make the trade deals with UK after the Brexit.
Lesser regulations and obligations- The UK has the option of refusing to
follow EU regulations by voting to leave the EU. United Kingdom does no longer have to
spend billions of pounds for EU membership fees. Since Britain was a major donor,
much of this money can be spent on its own economic development.

CONCLUSION
It has been concluded from above mention report that Brexit has a variety of
impacts on the country but it has a significant effect both on industry and trade. This is
because most of the businesses worked mainly in compliance with EU regulations and
standards. Additionally, the UK has always been limited to signing trade deals with other
countries, but is open after Brexit.
LIMITATIONS
The difficulty of performing an investigation is limitations. The key limitation of
this research is the thorough review and the information collecting is not open to reliable
and authentic sources. The key limitation is not to find out the authentic books and
journals for collection of information in detailed manner. This error is a problem that is
completed within a specific time period.

REFERENCES
Books & Journals
Baker, L., 2017. The impact of the General Data Protection Regulation on the banking
sector: Data subjects’ rights, conflicts of laws and Brexit. Journal of Data
Protection & Privacy. 1(2). pp.137-145.
Bloom, N. and et. al., 2019. The impact of Brexit on UK firms (No. w26218). National
Bureau of Economic Research.
Bloom, N. and et. al., 2018. Brexit and uncertainty: insights from the decision maker
panel. Fiscal Studies. 39(4). pp.555-580.
Bloom, N. and et. al., 2017. Tracking the views of British businesses: evidence form the
Decision Maker Panel. Bank of England Quarterly Bulletin, p.Q2.
Crowley, M., Exton, O. and Han, L., 2019. The impact of Brexit uncertainty on UK
exports. VoxEU. CEPR’s Policy Portal (21 January 2019). URL: https://voxeu.
org/article/impact-brexit-uncertainty-uk-export s.
Dhingra, S. and et. al., 2016. The consequences of Brexit for UK trade and living
standards.
Farnsworth, K., 2017. Taking back control or empowering big business? New risks to
the welfare state in the post-Brexit competition for investment. Journal of Social
Policy. 46(4). pp.699-718.
Hatzigeorgiou, A. and Lodefalk, M., 2016. The Brexit trade disruption revisited. The
Estey Journal of International Law and Trade Policy. 17(1). pp.41-58.
Jones, A., 2017. Brexit: Implications for UK Competition Law. King's College London
Law School Research Paper, (2017-21).
Kumar, S. H., 2017. Impact of Brexit on Tata Groups. In pursuit of Excellence, p.29.

Norton, W., 2016. Mitigating the impact of tariffs on UK-EU trade. Civitas, Institute for
the Study of Civil Society.
Simionescu, M. and et. al., 2017. The effects of European economic integration and the
impact of brexit on the UK immigrants from the CEE countries.
Online
Bryan,. K. T., 2019 How will Brexit affect businesses? 12 things you need to know.
[Online]. Available through: < https://www.sage.com/en-gb/blog/how-will-brexit-
affect-businesses/
>.
Lowe, D., Adkins, B., Laird, K., 2020. HOW WILL BREXIT AFFECT YOUR BUSINESS.
[Online]. Available through: <https://gowlingwlg.com/en/topics/how-will-brexit-
affect-your-business/>.
MacKay, B., 2019. Impact of Brexit on Businesses in the UK. [Online]. Available
through: < https://www.market-inspector.co.uk/blog/2016/10/impact-of-brexit-on-
businesses-in-the-uk>.