Brexit's Impact on Large Businesses: Economic Analysis

This report examines the multifaceted impact of Brexit on large businesses, focusing on both positive and negative consequences. It explores the economic uncertainties and financial difficulties caused by the UK's departure from the EU, analyzing factors such as long-term economic growth, the effects on UK exports, and the potential for new job opportunities. The report highlights challenges like increased costs for businesses, particularly for companies like Apple, and the impact on international trade and investment. It also discusses the potential benefits, such as the ability for businesses to identify customer needs more precisely and improved border security. The analysis covers various aspects, including the effects on employment rates, investment delays, and the overall implications for the UK economy, providing a detailed overview of the complex effects of Brexit on large organizations and their strategic responses to the changing business landscape.

The impact of Brexit related to
large businesses

Table of Contents
Topic - The impact of Brexit related to large businesses.................................................................1
The impact of Brexit related to large businesses.............................................................................1
REFERENCES................................................................................................................................4

Topic - The impact of Brexit related to large businesses.
What is Brixit
Brexit is made by two words “British exit”. It is refers to UK leaving the EU and the
European market with few or no deals. It is refers to the possibility of Britain withdrawing from
the European Union (EU). The reason behind the Brexit is that the European market is affect the
economy of UK as it decrease the GDP, market and overall economy so the decision is taken by
the government to improve the economy.
The impact of Brexit related to large businesses
As per the view of Billing McCann and Ortega-Argilés, (2019) It is clear defined that
Brexit has caused major uncertainty regarding British politics, but it must also be made clear that
the exit from the European Union is also creating the possibility of major economic and financial
difficulties. Therefore, the impact of Brixit related to large business In board terms, there are
many factors which negatively and positively affects business.
Grater long term economic growth rate
According to Lesort and Camp, (2019) it is stated that EU economy is not high as
compare to other as it has dismissal record. Thus, when UK exits the EU, the best advantage for
the UK companies is that they have opportunity to expand their business in UK market as well in
Eu market so it would be for its long term economic growth. On the other side, Many business of
UK have disadvantage when UK leaving the EU the cost of move its headquarters out of the UK
it could be increase. As the strategy and procedure will change so the decision making process
would be delayed so this creates the negative impact on large organizations. For example, Brixit
is creates the negative impact on apple because the cost of establish and transfer the branch and
administrative office would be increase because travelling and labour cost is arises so it creates
the negative impact on the business.
UK exports will take a hit
As per the view of Li, (2019) it is stated that when uk is leaving to the EU, the business
of UK is affects because UK exported £133 billion worth of goods to the rest of the EU, which is
almost equal to half of global goods export and it creates the negative impact because when UK
leave Eu they cannot make huge export and hit export business of the uk. On the other side,
when UK leave EU so the value of pound would be decrease so when organization import any
raw material it creates the negative impact because it would be expensive for the large
1

organization. For example, some complex situation between EU and UK, apple may Face some
financial issues related to the Brixit because apple increase their product cost due to fulfil legal
and other requirements so it would be challenging for the apple because the cot of product is
increase so demand of product would be decrease as customer cannot purchase the product due
to high prices.
Brixit offer the possibility of new job
According to Culkin, N. and Simmons, R., 2019Badiani, (2019) it is stated that Brixit
gives the opportunity to employee and large business as they hire the best employees according
to their goals and objective. This is estimates that there are 3 million jobs opportunity in Brian
which is related to trade policies, procedures, or other activities. Thus, the Brixit issues is affects
the employee as it increase the strikes and crisis among the employees because separation may
lead the confusion and it creates the risk. If sell the goods and service and market will expand in
the Eu so trading increases after the separation, as there is high chance that employment growth
in large business could occur.
Thus, the opportunity is high as many business want to expand their business in new
market for future growth so as result employee demand is high because many firm wants good
recurses for succession. Henceforth, high employee opportunity creates the positive impact on
the large business because employees are motivated as they want to work with organization so
they were produce the quality of product to enhance the sales and demands of product.
Therefore, separation is creates the positive impart on the large organization as they fulfil the
demand of customer with high production.
Brexit could help large business to identify the actual needs of customers
As elaborated by Crane, Matten, Glozer and Spence, (2019) it is sated that separation of
UK and EU it creates the two governing structures, as the local government of both are separated
structure and they easily create the framework that is much more specific to the needs. Thus,
many enterprises establish their business in both UK and Eu so to identify the needs of customer
is more simple because it reduces the confusion as organization is easily found the requirements
of customer. Thus, Brixit is creates the positive impact into large organization as it aids to
identify the needs of customer according to the culture and behaviour.
For example apple is the large organization and they identify their needs of customer in
both market by using the different approaches according to the culture and behaviour of the
2

customer as separation will be is creates the positive impact because it aids to target the
audience.
Brexit could improve border security
As per the view of Duarte Alonso. and Kok, (2019) it is stated that Brexit is provides the huge
security to the organization as Brixit will be reduces the security related issues. On the other side,
the advantage of Brixit structure is provides more security as it helps to checking the visitor and
import and export activities also the movement of people is helps to identify that which market
provides the growth to the organizations. Thus, Brixit is provides the opportunity to business as
they enter in any countries and expand their business with high security.
Increase unemployment rate in such situations
According to the view of Dodourova, Clarkin and Lenkei, (2019) it is sated that there are
many organizations who suffer from unemployment because many employees support the
European market and they easily leave the job and result is increase the unemployment rate and
lack of employees in the UK market. For example, Apple is affect due to Brixit because many
employees leave the organization because they support the Eu so company would bear the loss of
few employees also when firm hire new employee it incurs the cost of training. Thus, Apple
increase the overall cost as cutting job positions in the UK, in favour of a relocation on the
European continent
Delayed some investment in plants
As per the view of Brown, Liñares-Zegarra and Wilson, (2019) it is stated that if an organization
establishes in European union country and they have the plan to invest in the market of United
kingdom for the purpose of earning profit of growing business this investment get delayed due to
Brixit. This can hamper the business efforts and its investment money. For example, apple want
to invest their money in new market but there are some issues' organization face during the
investment and it leads the delayed on investments.
Thus, this delayed situation is hamper the business activity as apple not properly expand
their business in other markets also the procedure is enhanced the time as result it creates the
negative impact.
3

REFERENCES
Badiani, R., 2019. Outlook on UK-EU Brexit negotiations and possible economic
risks. International Economics and Economic Policy, 16(1), pp.5-16.
Billing, C., McCann, P. and Ortega-Argilés, R., 2019. Interregional inequalities and UK sub-
national governance responses to Brexit. Regional Studies, 53(5), pp.741-760.
Boussebaa, M., 2019. In the shadow of empire: Global Britain and the UK business
school. Organization, p.1350508419855700.
Brown, R., Liñares-Zegarra, J. and Wilson, J.O., 2019. The (potential) impact of Brexit on UK
SMEs: regional evidence and public policy implications. Regional Studies, 53(5), pp.761-
770.
Crane, A., Matten, D., Glozer, S. and Spence, L., 2019. Business ethics: Managing corporate
citizenship and sustainability in the age of globalization. Oxford University Press.
Culkin, N. and Simmons, R., 2019. Shock therapy and entrepreneurial flare#
Brexit. International Journal of Entrepreneurial Behavior & Research, 25(2), pp.338-352.
Dodourova, M., Clarkin, J.E. and Lenkei, B., 2019. The die is cast: Brexit's influence on student
career intentions. Studies in Higher Education, pp.1-17.
Duarte Alonso, A. and Kok, S., 2019. Dynamic capabilities in the context of Brexit and
international wine business: An exploratory two‐country study. Thunderbird International
Business Review, 61(2), pp.277-290.
Lesort, E. and Camp, C., 2019. The economic impact of Brexit on French companies: A
quantitative study on the ability of French companies to handle Brexit.
Li, H., 2019. Volatility spillovers across European stock markets under the uncertainty of
Brexit. Economic Modelling.
4

5