The Changing Business Environment

Running head: THE CHANGING BUSINESS ENVIRONMENT
The Changing Business Environment
Topic: In a post-Brexit, the assumption of increasing globalization and trade has been called into
question. Explain why this is so, and discuss the implications.
Student’s name:
Name of the university:
Author’s note:

1THE CHANGING BUSINESS ENVIRONMENT
Table of Contents
Introduction......................................................................................................................................3
Concept of Brexit on global economy.............................................................................................3
Impact of Brexit on globalisation....................................................................................................4
Impact of Brexit on trade and financial services.............................................................................5
Conclusion.......................................................................................................................................6
Reference List..................................................................................................................................7

2THE CHANGING BUSINESS ENVIRONMENT
Introduction
On 23rd June, Thursday 2016, people of Britain decided to leave EU (European Union) and this
departure of Britain from the UK is termed as ‘Brexit’. The result of Brexit, the value of pound
fell at its lowest level and Prime Minister of Britain Cameron resigned from his post. Britain is
now busy with the rights of EU citizens, Brexit bill and Irish border. Britain wanted the end of
the supremacy of EU over the UK. However, it has impacted some negative impact on the UK
and the rest of the world also. Amidst the hullaballoo, the international trade and idea of
globalisation have faced the major challenges. In this essay, the post-Brexit impact on
globalisation and trade will be evaluated through examples and secondary data sources. This
essay aims to highlight the post-Brexit assumptions on globalisation and trade that are
questionable state right now.
Concept of Brexit on global economy
In the UK, the Brexit victory brought to the UK the loss of its top position in the AAA
credit rating on the June month in 2016. Significantly, the UK had to cut off the interest rate in
order to prevent the recession in the UK. The economy of the UK slipped to degrade as the
marketers got afraid for trade agreements of EU after the UK would leave the EU. The interest
rate was the record low at 0.25% and policy makers feared that disruptive economic fallout
might happen (Dhingra et al. 2014). Now, PM Mrs May wants that Britain must leave the EU as
it is a single market. It is needed that EU's free movement should be stopped. Not only in the
UK, but this also impacted on global economy also. The financial market of macroeconomic can
put consequences on sustained rise of US dollars' value as Euro is getting ahead. Manufacturing
industry will shine and this may put extra pressure on US economy. It is clear that most of the
economic transaction used to happen in the epicentre of EU that is Britain. When this bonding
will break, the capital will be shifted to Asian countries and to U.S. This may lower the interest
rates and may decrease the currency values in the European nations. EU and U.S are two largest
exporters in the world, in case of leaving the UK from EU, value of US dollars will get high
(Nousios et al. 2016). This incident may scare the China in increasing value of Yuan. European
Central Bank will be at risk to cover the risk of premium in Eurozone (Nunez-Ferrer & Rinaldi
2016). Most importantly, Italy will face pressure as each blow of the Brexit will impact on the