Impact of Brexit on Parliamentary Sovereignty and Global Business Environment

Business Law and Ethics
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INTRODUCTION
A court decision in the year 1608 in the Case of Proclamations aimed to mitigate the power
of the monarchs and gave birth to the idea of parliamentary sovereignty which gives the highest
or the supreme authority to the UK Parliament (Goldsworthy, 2010). In this project report, an
attempt has been made to analyse the impact of Brexit with reference to the global business
environment and parliamentary sovereignty of UK.
TASK
Among the many other possible outcomes and impacts of Brexit, one of the most anticipated
is the restoring of the Parliamentary Sovereignty of the UK as the country will no longer be
bound by the laws and regulations of European Union. Most of the countries in the world have a
governing and regulation system where laws and regulations are made in the country as per the
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guidelines of a single document named constitution. Unlike the other countries around the globe,
UK lacks a single document as the federal law guiding instruction but instead has a concept of
Parliamentary Sovereignty where any law in the country can be made or unmade by the supreme
authority of Parliament. Over the past few years, the dynamics and modules of Parliamentary
Sovereignty have undergone many changes with a very heavy influence of the decision of Britain
to become a member of the European Union (Elliott, 2004). According to a court judgement,
Parliamentary Sovereignty and European Law were in significant contrast to each other which
made the decision of Britain joining EU controversial. With this event, European Law in the
country assumed a higher position that the Parliamentary Law which earlier had the supreme
authority in the country. It is evident from the court decision with regards to the case of
Factortame in which an interlocutory injunction demonstrating primary legislation was issued by
the House of Law in adherence with the EU law (Toner, 1997). As a result of the doctrine of
direct effect, the power of Parliament in the UK was restricted upon becoming a member of the
European Union (Pescatore, 2015). A clear guideline has been established by the European Court
of Justice which states that in the event of a conflict in the member state, European Law will
prevail over the national law. As a result of the EU law prevailing over the national law in the
country, the impacts were quite tangible such as in the case of Van Gene en Loos where
according to the British Parliamentary Law a customs duty was required to be paid by the
company but due to the supremacy of the European Law, according to the court judgement, there
was no compulsion of paying the import duties or import tax (Rasmussen, 2014). Economic
environment in which the business organisation operate in UK facilitates and provides assistance
to their growth and development. Over the past many years, economic growth and development
has witnessed one of the biggest waves in the UK which has helped the existing and new
business ventures in a very effective manner. Policies adopted by the government has been made
with the objective of providing some relaxation to the business organisation and give them a
chance to prosper without any intervention or government regulation which creates any sort of
obstacle for the companies (Young and Gee, 2016). Economic environment in the country has
also increased the competition for the business organisations since many new companies and
organisations are making their way into the different sector and different industries. Business
organisations in the country are being encouraged to adopt more innovations and offer the best
quality of products to the customers which helps them in fighting the competition. With the
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