An Analysis of Brexit's Impact on International Trade in Asian Markets

This essay analyzes the impact of Brexit on international trade in Asia, examining both positive and negative effects. The positive impacts discussed include potential growth in foreign trade due to currency exchange and increased demand for Asian goods, innovation and productivity gains, and the exchange of expertise in the workforce. The negative impacts highlighted include economic uncertainty, especially in the UK market, and potential hindrances to trade investments and relations. The essay references various academic sources to support its findings, concluding that Brexit presents a complex mix of challenges and opportunities for the Asian market, affecting its economic and technological landscapes.

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THE IMPACT OF BREXIT IN ASIA.
NAME OF SRTUDENT:
NAME OF INSTITUTION:

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The impact of Brexit on international trade in Asia.
Introduction
According to Lux & Pickett, (2017) as far as technology has created a major
effect on the world of business, the biggest danger still remains the effects of the recently Brexit
in the European unions. The UK has been within a trade relationship for over 40 years with the
other EU countries but recently initiated the process of establishing its own international trade
policies besides the existing EU policies (Lux & Pickett, 2017).This establishment by the United
Kingdom government will have great effects on international trading with a significant impact on
business consumers. According to Zhu, (2016) the United Kingdom had already arranged to pull
out in the trade arrangement already set and to set its own trade line. These new trade
arrangement will have huge global effect including here in Asia (Zhu, (2016). Culturally, the
business world is known to grow through the involvement of policies which may have a
domestic or word wide effect to the trading nations in one way or the other, similarly benefiting
the other countries in another way. Below we are going to discuss some of these effects and how
the Brexit will have brought changes to the global trade in Asia (Huang, David, and Reilly,
2018). Basically, we are going to highlights both the positive and negative impacts.
Positive.
International foreign trade.
The international foreign trade involves the exchange of currencies between
different countries with a mutual benefit (Lux & Pickett, 2017). Through the Brexit, a new
positive trend of forex exchange is created to the Asian market through the direct exportation of
goods and services to the great pound market. Although it may be seen as a negative effect, the

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huge production of goods in the Asian market with the huge industrialization of the UK market
will bring a new market for the Asians thereby doubling the economy (Lux & Pickett,
2017).Moreover, the UK market will benefit with the huge Asian populations thereby creating a
ready market for the industrial manufactured good. Through this interchange, currencies are
interchange which will eventually improve the value of the Asian currency (Lux & Pickett,
2017).
Innovation and productivity.
The existence of Brexit will likely have an effect on the Britain market as
compared to the Asian. This, therefore, creates a potential for higher production in the Asian
market to cover the Britain deficit (Lai & Pan, 2018).The higher intake of the Asian products
will improve the Asian market urge to sell to more and therefore more innovation will be brought
into the Asian market. This, therefore, means that the Brexit will have a great advantage to the
overall productivity of the Asian market both in goods and services (Lai & Pan, 2018).
Migration and employee relations.
Economically they are no country which is fully dependable on its workforce
without relying in some way upon the expertise of the other nation (Meager, 2017). Through
Brexit, an employment window will be created between the two countries to exchange different
expertise. As it’s well known the UK market carries more technologist expert as compared to
the Asian market and therefore the free movement of technology known-how from the UK to
benefit the Asian population (Park et al., 2016). Lastly, the Asian job market will have benefited
through the movement of the high unemployed population in Asia to the UK. This will create a
more foreign exchange for the Asian market hence increasing productivity (Campbell, 2018).

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Negative.
Economic uncertainty.
Although the UK had initiated the process, a great business uncertainty has been
created especially in the UK market where traders are not able to predict the tomorrow of
business (Lai and Pan, 2018). This is a negative effect to both the British and Asian economy as
most traders have either to hold on investments or pull out as they wait for the full
implementation. The investments uncertainty will eventually create inflation in the economy,
resulting in a major job loss. As evidenced in Lai & Pan, (2018) most European traders,
especially from the Asian market, have diverted their UK trading in order to earlier prepare for
the unseen (Lai & Pan, 2018).
Trade investments and relations in the UK.
According to Mordecai, Rana and Vilene, 2016) a major impact on the
developing sections of Asia will be felt especially on the merchandise exports to the UK. As
compared to the EU to Asia trade agreement, the UK- Asia trade agreement may constitute strict
guidelines which may have an overall hindrance to the movement of goods among the nations
(Bulmer & Quaglia, 2018).Generally, the UK will be an independent trading nation and therefore
will require each and every country to sign specific trade agreements to be allowed to trade with.
As the UK GDP (gross domestic product) is much higher than the Asian countries, the Asian
economy will much rely on UK exports to stabilize its growth (Bulmer & Quaglia, 2018).
In conclusion, Brexit brings both negative and positive impacts on the Asian
market, through economic and technology related impacts.

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References.
Bulmer S & Quaglia L., (2018). Journal of European Public Policy. The politics and economics
of Brexit. Volume 25, 2018 Issue 8. Available at:
https://www.tandfonline.com/doi/full/10.1080/13501763.2018.1467957
Retrieved on 01/11/2018.
Campbell A, (2018). Interbank benchmarks, Brexit and conduct risk in Asia. Available at:
https://www.risk.net/7-days-in-60-seconds/5614956/interbank-benchmarks-
brexit-and-conduct-risk-in-asia. Retrieved on 01/11/2018.
Huang, David W & Reilly, (2018). Explores Brexit’s implications for East Asia, and in particular
China. The implications of Brexit for East Asia. Available at:
https://www.palgrave.com/gp/book/9789811301841 retrieved on 01/11/2018.
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recommendations for Asia. Available at: https://www.rsis.edu.sg/wp-content/
Brexit-and-its-Aftermath. Retrieved on 01/11/2018.
Lai K and Pan F, (2018). Science direct. Brexit and shifting geographies of financial centers in
Asia. Available at:
https://www.sciencedirect.com/science/article/pii/S001671851830040X?via
%3Dihub. Retrieved on: 01/11/2018.

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Lux M & Pickett E, (2017). The Brexit: Implications for the WTO, free Trade Models and
Customs procedures. Global trade and Customs Journal. Issue 3. Available at:
https://www.kluwerlawonline.com/abstract.php?
area=Journals&id=GTCJ2017016 Retrieved on 01/11/2018
Park J, Gokul H, Varun R, Hisashi M, and Narci C, (2016). Asia technology: Our take on impact
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