International Strategic Management: Impact of Brexit on UK, Norway, and Iceland

International Strategic
Management

Table of Contents
International Strategic Management................................................................................................1
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Brexit and Uncertainties caused by It..........................................................................................3
Effect of Brexit on UK, Norway and Iceland and Terms of Trade Agreement and its Benefit. .4
Role of UK, Norway and Iceland in World Economy.................................................................5
Foreign Direct Investment and Foreign Value-Added Activities................................................6
Application of Economic Trade Theory......................................................................................7
Relevant Considerations..............................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
International Strategic Management refers to a comprehensive and ongoing management
planning process including formulation and implementation of strategies so that countries can
compete and perform effectively at international level. This report includes discussion over UK
and impact on Economy of UK due to Brexit. Along with UK Norway and Iceland has also been
included in the discussion. There are various benefits that country might have due to Brexit along
with some of the factors and disadvantages like increased cost and difficulty of free trade with
EU countries. This has been discussed with role of countries in Global Economy and Theories
like FDI.
MAIN BODY
Brexit and Uncertainties caused by It
Brexit is exit of Britain from European Union. The exit of UK from EU was a result of
votes and as per votes 52% wanted to leave and 48% wanted to remain and on the basis of this
British Government formally announced country’s withdrawal from in March 2017 (Dhingra and
et.al., 2016). This begun a transition period in this UK and EU will negotiate terms of their future
relationship. In this UK remains to subject of EU Law and part of EU custom unions and single
market but is not longer a part of political bodies of EU.
EU (European Union), it is a political and economic union of 27 countries which are its members
and primarily are located in Europe. In this EU has developed internal system which are required
to be followed by all the member states and all the states are open single market which allows for
free trade among member states. All the member states are required to follow standardised
system of law which have been developed by EU. Through this union ensures free movement of
people, goods, services and capital within internal market.
Earlier as UK was also member of EU it was also subject to all this system of EU. Exit of Britain
from EU have caused many uncertainties (McGrattan and Waddle, 2020). Uncertainties of Brexit
are harming UK Economy and some of the uncertainties which have caused by Brexit are as
follows-