POTENTIAL IMPACTS OF BREXIT ON BUSINESS

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Added on 2024/07/03

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This paper explores the potential impacts of Brexit on businesses in the United Kingdom. It examines both the positive and negative consequences of the UK's withdrawal from the European Union, including the implications for trade, investment, and security. The paper concludes that Brexit is likely to have a mixed impact on businesses, with some sectors benefiting from increased flexibility and others facing challenges due to increased trade barriers and uncertainty.

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POTENTIAL IMPACTS OF BREXIT
ON BUSINESS

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TABLE OF CONTENTS
Introduction......................................................................................................................................1
Finding and Discussion....................................................................................................................2
Positive impact of Brexit on Britain............................................................................................2
Negative impacts of Brexit on Britain......................................................................................... 3
Conclusion....................................................................................................................................... 5
References........................................................................................................................................6

Introduction
The word Brexit is describing about the impending withdrawal of the United Kingdom from the
European Union. The official referendum was held on 23rd June 2016, approx 51.9% UK
electorate voted to leave the European Union. It is the biggest risk taken by the UK to depart
from the RU as no other country departed from the EU before that. The UK Prime Minister
Theresa Mary May announced that UK would not be permanent member of the European single
market after leaving the EU. A new government department name the Department for Existing
the European Union was created in July 2016. A UK negotiation with the EU was started in June
2017 and it has objective to complete withdrawal agreement by October 2018. As per the
economic research, it is assess that the per capita income of the UK is likely to reduce in medium
and long term due to Brexit.
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Finding and Discussion
Many of the Europe’s newspaper reacted differently on the decision of UK to depart from the
European Union. One of the Europe newspaper name Die Welts said that the Prime Minister
Theresa Mary May is ‘leading Great Britain into isolation’. And another newspaper Italian daily
La Repubblica wrote a headline "Brexit, London gets its wall, 'away from the EU and the
common market”. Daily Express newspaper said about the Theresa speech on Brexit that she
had "laid out the UK's path to becoming truly independent again" (Llewellyn and Cram, 2016).
There are many questions that need to answer about the matter of Brexit and following are some
questions given below:
What it will cost to UK to leave the EU?
Could Brexit leads to grater Xenophobia towards EU migrants?
Are cities in Britain will able to cope with the problems due to Brexit?
What will happen to the car manufacture industries of UK which are owned by the foreigners?
Therefore, so many issues and impacts of Brexit are discussing and also many newspapers and
politicians in EU has give their opinions and view about the exit of Britain from the EU.
Positive impact of Brexit on Britain
Free trading: After departing of UK from the EU it gives flexibility to Britain to freely trade
with many countries like India, Japan and UAE. Brexit also leads to considerable improvement
in the job market in Britain. Therefore, Brexit has provides flexibility to Britain to freely trade
with the other countries and get maximum benefit from this flexible trade opportunity (Hobolt,
2016).
Being held back: Britain has long being held back by the European Union that was imposing
various rules and regulations on doing business and charging billions of pound for free
membership but Britain was getting few benefits out of it. After Brexit, it gives independency to
the UK to spread it business at various locations without any restrictions.
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Security: After impending withdrawal of the UK from the EU, Britain has achieved high level of
security from the people coming from across the borders by imposing restrictions on who enter
and who doesn’t into the borders. It has also reduced a lot of security threat issues such as
immigration issue (Dhingra et.al, 2016).
Negative impacts of Brexit on Britain
Disconnection of contract with international companies: UK is greatly benefited by the
businesses with the many international companies due to easy connectivity to the open EU
market. But after departure of UK from EU, UK will loses all the business connections with
many international companies.
No more Easy trade: UK is greatly enjoying the benefits of easy selling of goods and business
from one EU country to another and also opening the doors for vendors of Britain to trade with
other nations. But after the exit of Britain from EU, there will be more rules and restrictions that
will affect the trade of many business organizations of UK (Wadsworth et.al, 2016).
Rise in price: After exits of Britain from the EU, the prices will be considerable rise for the
import of food product and other used product. After departure, Britain has formulated new
pricing strategies that will impact trade with the other regions and nations.
Losing influences: Britain has great influence over the international matters when it is connected
with the EU but after exist from EU it has loses its influence as EU has connections with many
international countries that are also affecting the growth and development of businesses in
Britain. Now Britain has very less connection with other international businesses and traders that
has create rigidity for local traders of Britain (Busch and Matthes, 2016).
Investment: Britain has to pay huge amount to EU for free membership every year but it also
gets billions of pounds of investment every year. It reduces the problems for Britain to make
trade agreement with other nations every time during trading with them. But after the Brexit, it
has increases the trade barriers for the local traders to trade across the borders.
Threat to security: Britain in EU getting better protection from the crime and terrorism activity
as they are getting combined support of all the European country. But after exist of Britain from
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EU, it has increases the threat to security and protection from crime and terrorism activities
across the borders (Dhingra et.al, 2016).
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Conclusion
As per the above discussion, it is concluded that Brexit is impacting Britain in the both positive
and negative way. After exit of Britain from the EU, Britain trade and business has greatly
affected as it reduce the benefits for the UK traders and businesses to trade with other
international countries and expand its growth but at the same time Brexit also gives flexibility to
the Britain to trade with countries such as India, Japan and UAE without any restrictions. It also
create threat to security and protection as Britain has increases high level of security from the
people comes across the borders but also at some level it increases the threat to security because
it disconnect the connection of Britain with other EU countries. Therefore, Brexit has influenced
the Britain in both positively and negatively and also reduced the per capita income of the Britain
for medium and long term.
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References
Books and Journals
 Busch, B. and Matthes, J., 2016. Brexit-the economic impact: A meta-analysis (No.
10/2016). IW-Report.
 Dhingra, S., Ottaviano, G., Sampson, T. and Van Reenen, J., 2016. The impact of Brexit
on foreign investment in the UK. BREXIT 2016, 24.
 Dhingra, S., Ottaviano, G.I., Sampson, T. and Reenen, J.V., 2016. The consequences of
Brexit for UK trade and living standards.
 Hobolt, S.B., 2016. The Brexit vote: a divided nation, a divided continent. Journal of
European Public Policy, 23(9), pp.1259-1277.
 Llewellyn, C. and Cram, L., 2016, March. Brexit? Analyzing Opinion on the UK-EU
Referendum within Twitter. In ICWSM(pp. 760-761).
 Wadsworth, J., Dhingra, S., Ottaviano, G. and Van Reenen, J., 2016. Brexit and the
Impact of Immigration on the UK. CEP Brexit Analysis, (5), pp.34-53.
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