Impact of Brexit on UK Automotive Sector and Global Trade Dynamics

This report critically analyzes the impact of Brexit on the UK automotive sector and global trade dynamics. It begins by exploring key trends in trade and investment among Commonwealth countries, highlighting megatrends, trade patterns, and the effects of deglobalization. The report then evaluates the specific effects of Brexit on the automotive sector, examining regulatory implications, cross-border trading challenges, and economic impacts on cities. Furthermore, it critically assesses the potential challenges and opportunities for multinational enterprises (MNEs) in the post-Brexit automotive sector, considering the changing global trade landscape, the automotive value chain, and the rise of digitization and electric vehicles. The report concludes with a comprehensive overview of the challenges and opportunities presented by Brexit, offering insights into the future of the automotive industry in the UK.

CRITICAL ISSUES IN
BUSINESS MANAGEMENT

INTRODUCTION
Business management is the act of the managing individual to attain the desired goals as
well as objectives of a business entity. To manage the different activities in the business require
following a particular procedure such as planning, organizing, directing and controlling to make
effort as a reason of attaining the entity listed goals (Budhwar and Debrah, 2013). The phase of
Brexit impact on the trading relations with other countries all around the globe. Due to Brexit,
economy earns high growth and profitability through trading operations. This report is manly
based on the post Brexit time and the fluctuations in global landscape for the globalised world. It
shows impact on the growth of the economy and develops country to get effective result.
MAIN BODY
Key trends in trade and investment between common wealth countries
This concept is mainly related with the common wealth countries which is much effective
and essential for growing in economy that effectively leads to growth and improvement of all
over the countries. As per the index, the ratio has been taken and shows that goods were exported
from one country to other are more than billions. Hence, it was great exchange of goods as well
as services (Patterson, and et. al., 2015). There are defined different trends in trade and investment
which is related to commonwealth countries such as:
 Megatrends related to common wealth: A megatrend is defined as a shift in a behavior as
well as attitude that impact on the global crosses on different industries. In fluctuating
global environment, megatrend evaluation is critical for organizations seeking to drive
and sustainable growth and stay with related competition in increasing manner and
dislocate whole sector. These trends are related with the common wealth country like
UK, there was high growth in the year of 2013, where trading was highly and taking
place among the various countries but after 2013. Due to fall down different countries
impact on the economy which is based on these industries
 Commonwealth trade and investment trends: The trading of goods or services in between
different countries was essential and provides outcomes in offering employment
possibilities for a large group and much individual generating money through trade and

investments (Eriksson, 2013). The main goal of commonwealth countries are related with
each other and enhanced their overall business activities so that poor nations can
effectively bring out their trading activities hence it outcomes in attaining growth for
entire nation. Heads of government and the community nations that are Singapore and
Malaysia is those countries that, by participating in different trade activities, command
high productivity.
 De-globalization: It is the procedure of retreating interdependence and combination
between particular units all around the world. Mainly, it s utilized by the country and
define the periods of history when economic trade and investment happen between
different countries due to decline. Reciprocal partnerships, created by quantitative
outcomes, are representatives of nations with United Kingdom and supports to obtain the
high level of income that helps to obtain higher foreign investment so that the country
can expand as well as the deprivation level can decrease (Foss and Knudsen, 2013).
 Future of world trade and global value chains: The European countries reflect community
countries around the world and have made a decent contribution to development and
growth throughout the world. When market is carried out than there would have been
opinions created in the company among prosperity nations, resulting in the gaining of
enormous capital and finer granularity for participants in all business processes. One
element that can convert the entire impact of the Commonwealth countries into a
decrease in transaction costs. Comparing with other leaders of a commonwealth country
as they earn high profits from the daily activities.
 Commonwealth governments and private sector response: The common wealth countries
constitute group nation around the world and have made a decent contribution to
improvement as well as development throughout the financial system. When company is
carried out than there would have been proposals created in the trade among developed
nations as a consequence of which the representatives would receive enormous income
and much more security from all procedures. As a result, the total field of company trade
often doubles the GDP levels they won strong productivity. Such nearby countries have
seen continued development in their overall trading company because there have been a
wide number of potential openings given to people that aid in economic development and
progression.

Evaluation the impact of the brexit on the trade and investment within
automotive sector
On June 23, 2016, the British government voted to remain in the eu with an election; it
implies British departure. Voted to leave by 51.9% to 48.1%; the parliamentary vote carried out
by other than 30 million votes to 71.8%. In addition, people are now asking regarding natural
and artificial Brexit to care how serious the United Kingdom will be to EU following
withdrawal. Once you consider the consequences of Brexit, you need to learn what the Eu is. It is
a major discussion on automotive services in Brixit, having actual advantages from the
automotive sector with the British economy and having a performance in various commonwealth
nations (Saraniemi and Kylänen, 2011). Assertion of the investment and trade market associated
with the different factors linked to the UK automotive sector and its benefits and drawbacks are
listed following:
Regulation implication: It's a very complicated financial element. At the other hand, the
regulatory bodies of international regions have laid down their specific laws as well as
legislation that the law of the United Kingdom must be enforced above the rules established by
the United kingdom. As a result of changes in the regulations of the automotive sector, it affects
international trade. Brexit has decreased the sustainability of the automotive sector and the
problems that can have an impact on UK and EU legislative policies and plans can be increased.
Issues that can indicate the regulation and legislation that are applied by reviewing the laws as
developed in the British can only be enforced. Solution which are implemented for arguments it
is executed in single marketing operations and UK and these are a highest and major priorities in
negotiating factors applicable at Brexit.
Implication of cross border trading: : The most demanding cities engaged in exchanging
activities are Brixit's transactions in a really short period of time because they appreciate the
competitive edge and therefore persevere in all services and production. Environment is
technologically advanced with the resources to conduct complex facilities. Reproduce the
variables that can maintain the role and productivity of the economies and improve their
transcription factors. As per the alteration in different activities which is related to automotive
sector in case of where scheduling has been set and link with the discussion and these changes
apply in the automotive sector so all the activities are handled in the European Zone. On the

other hand, effect on the slow down in a talent of EU that follows by the overall automotive
sector. Consequences are developed that are threat point as per the necessities of United
Kingdom for supporting with the letter of permit and visas to travel into other country and invest
in the particular sector. So many of the other prospects are theirs that apply for all the causes of
loss being rewarded and then they can achieve the prosperity if a trade and investment deal with
all the global cities that are accessible in the market is conducted.
Economic impacts on city: Cities engaged in manufacturing activities are most demanding due to
Brixit's activities in a very short period of time as they appreciate the economic benefits and
therefore persevere in all transactions and development. Ecosystem is technologically advanced
with the resources to accomplish complex services. Reproduce the variables that can maintain
the role and productivity of the market and boost their lipids. They supervise the court of human
rights in the countries of Europe. Another big influence as they decelerate in an Eu potential that
emerges from the entire financial industry. Obstacles are produced and these are the weaknesses
of UK standards to operate with the certificate of authorization and permits in the other hand
they may accept automotive issues.
Critically evaluation of the possible challenges and opportunities of
multinational enterprises
The United Kingdom, due to regulated Brexit faces different types of challenges and
problems in the economy in different aspects. While, Brexit offer impressive possibilities to the
country in reference of improving gross domestic product rates. If the nation was not able to
provide job opportunities to people. As a result income level goes down and impact on the
economy. Although, Brexit have chances and issues for UK and its bilateral relationship with
other nations. While, Britain is unable to discuss free trades deals with other countries until exit
from the EU is consisted in March 2017. There is evaluation on these components which I
related with the automobile sector and impact in positive as well as negative manner such as:
A Changing global trade landscape: The changes under terms of Britain will consist of from EU
have become clear in recent months. As a result government unveil information of regulation
which is related with the trading an investment at global level. How it would incorporate existing
EU regulation into British legislation to leave the nation in the condition. The fundamental threat

is linked to the world trade component that accompanied the Eu without any exposure to the
federal exchange. Administration plays a key role in raising the price of different taxes,
restrictions and tariffs, and is unable to achieve broader productivity and development through
such trade associations.
Automotive value chain: Brexit has been considered to be very major damage to the growth as
well as maturation of the UK economy. However it was consequently based on what damage
control would occur throughout the coming decades of liberal trade talks. Currently there is just
so much confusion in the stock and securities sectors in this international competitive landscape.
Demise of extra funding, social unrest, and limits on hiring are a huge issue for federal agencies.
The most critical task is to balance all the variables of uncertainty that have tremendous
influence in various areas. It is the administration's duty or its jurisdiction to handle all imports
and exports kept at and highlight the borders, as well as to improve the nation economic
situation.
Digitization and future of the automotive value chain: In every digital age, increasing corporate
organization's primary concentrate place to broaden its activities on a broad scale as it is
successful in achieving high competitive position and business model. Overseeing foreign
activities can be regarded as the firm's most important task, as it is necessary to achieve high
performance across a broad area. Multinational corporations have faced different issues to
execute their activities and roles in a world that is rapidly evolving. It was assumed that the
organization is generally centered on determining the laws and legislation enforced by nations
with a view to preserving their economic state by growing overseas corporate rates. In addition,
Brexit also presents the nation with future possibilities, i.e. Uk's Gross domestic product rate and
per capita GDP improvement.
Connected, autonomous and electric vehicles: Because of Brexit, massive business organizations
have been set up, it would outcome in employment possibilities to individual. It would enhance
their available income. While it would increase their standard of living if British people devote
greater amounts on ingesting products and services. The effect of Brexit on both the total size of
the British economy should be looked at. The evaluation indicates that in two theoretical
withdrawal situations the United Kingdom will maintain a fairly broad, prosperous and strong

economy, although not as massive or prosperous as in the fallacious case if the United Kingdom
remains in the Union in context of electric vehicle which is supplied by the automotive sector.
CONCLUSION
As per the above report it is concluded that the above report based on the Post Brexit
trade in goods and investment to analysis success in the economy and attained the development n
a nation that are consisted of different activities of trading. As trends in the goods and services
between commonwealth countries had a efficiently and fastly growth in the economy. It supports
in growth as well as long time success of the firms. In the economy after Brexit was
advantageous in employment for local citizen and group of people and it helps to remove poverty
from country and have large possibilities of jobs and apply all the relevant changes. It is also
created problem in automotive sector but follow all the rules and regulations properly and get
effective results. There are identified all the positive and negative aspects of the post Brexit.

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