A Detailed Report on the Impact of Brexit on Business Development

This report delves into the multifaceted impact of Brexit on businesses, examining both the challenges and opportunities that have emerged since the United Kingdom's decision to leave the European Union. It analyzes the effects on trade, import/export dynamics, and various sectors, including...Read More

Impact of Brexit

Table of Contents
INTRODUCTION ..........................................................................................................................1
MAIN BODY ..................................................................................................................................1
CONCLUSION ...............................................................................................................................3
REFERENCES................................................................................................................................1

INTRODUCTION
Brexit is short form of British Exit, which referring to the United Kingdom's decision in a
June23, 2016 referendum to the leave the European Union by the majority of Britishers votes
which supported in withdrawal of UK from the EU. Brexit is defined as the most essential
element which has a huge influence on the business activities and affects the economic
development (Bergin and et. al., 2016). United Kingdom is a best place to expand business that
could affect due to the influence of Brexit on business. There were different effects of Brexit as
British pound fell to the least level and several changes arised in the inflation rates, manufactured
products, transport equipment’s, food products, petroleum products, tobacco and alcohol and
many more. This report contents the study about the impact of Brexit on the business and the
opportunities and challenges which are arises through the emergence of Brexit. A brief
evaluation about the impact of Brexit on the tourism aviation industry will also be discussed.
MAIN BODY
Brexit was originating from a long time as Britain has needed to leave the European
Union. The result of the UK's EU choice or votes and looming exit negotoation, there are
significant impacts of Brexit that consequences for the exchange streams between the UK and
the EU. As indicated by Lianna Brinded, Hard Brexit will fall £ 17 billion (around $22.7-billion)
from yearly EU trade incomes over the key UK fabricating or manufacturing division. The
purpose for this is increased costs for UK export so EU purchasers changed to the domestically
produced items as to satisfying their needs and wants.
Brexit has the capacity to primarily rewrite the rulebook guiding how organisations perform
commercial activities in the UK and there are certainty been no shortage of serious concern
(Gudgin and et. al., 2017). As per the opinion of Ross Brown, 2018, In the country of UK, there
are around 5.7m SME's, that account for around 99% of private sectors organisations and 60% of
employment is in private sector. Small business organisations are also chronicle for 73 percent of
all net private sector job building in the country of United Kingdom, creating about 2m jobs
opportunities from 2010. Therefore, how SMEs react to the fluctuations arising through Brexit
has potential negative aspects for the economy.
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The European Free Trade Association (EFTA) was established in the year of 1960, where
UK founded their members. In this, if EU choose to change its different strategies and techniques
then it specifically impacts on the UK as they affects entry of UK to single market. The impact
of Brexit on organizations, it has been lose for UK of around £ 4.5 billion per year leave
European Union. They leave the EU with no negotiation or appropriate arrangement in regards
to new exchange concurrences with the European Union too. Some of the specialists says that the
cost exceed the last year data and this is advantage to the UK as they have not pay pay £ 9 billion
towards the European Union spending in per year. There are significant effects on the workers
and additionally work in positive and negative way (Gudgin and et. al., 2018). According to the
factual information, it has been investigated that unemployment rates have increased to 6.5 %
due to recession that losses equivalents to 500,000 jobs and profiles.
Henceforth, Brexit affected on trading and organizations in various areas including
consumers, automotive, technology, health care etc. because of the reason of abbreviation of UK
from European Union as well.
Opportunities
Previously, the UK is an outward looking, liberal, entrepreneurial country. But in the
present decades, this liberal dynamism has been compromised through the various values. Brexit
renders the UK with once-in-a-generation opportunities to primed free our trade, commerce and
people. The major opportunity for UK is that the country get chance to making their own trade
and provide a wide area of conduct business in different segments without any interferences of
European Union. Some of those opportunities are found but in some cases these are overlooked,
legal systems are taken into consideration as these are based on some common laws. In this an
organisation can conduct business without considering any law, in this case laws are passes in
when the business has starts to harm others. Brexit has a direct influence on the smaller size
organisations and this considered to be the most critical element which is very much closer to the
life outside the European Union. Small business organisations are the key element of the British
economy, which making up more than 99 percent of the private sector business landscape. Brexit
will unexpectedly brings its fair share of challenges for business organisations. Thus the decision
of leaving the EU may not prove to be the best course of action. Some essential opportunities are
described as below:
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 Increased scope for enterprises and inward investment.
 Expanding into internal market as to attaining more growth and success. Plugging the talent gap through skilled domestic workers.
Challenges
As per the opinion of Laurence Peter, 2016, the United Kingdom analyse market and make it
sure that there is no discrimination through being the outsider of the Europe. This is effective for
protecting interest of London's authority, considered as the largest European Economic
Community. If the UK pull off to discuss regularly accession to the European industry on
advantageous policies which deals to safeguard discrimination. (Nunez-Ferrer and Rinaldi,
2016). There are various challenges which are faced by the UK after Brexit in which some are
associated as below:
Withdrawal Negotiation: Under Article 50 UK can back-foot from European Union, so this
affects taking effective participation in the communication of the European Union. Thus, few
major issues the United Kingdom will be cut out of EU decision making at the upper level ahead
it potentially leaves.
New Trade Relationship: If the European Union waits intil the UK's formal withdrawal, the
negotiation can be resistance for more than 5 years. The UK will make business transaction
under the world trade organisation. That would represents that the foreign country investors pay
new tariff duties which are significant for facing issues as China and other countries in trade with
European Union.
CONCLUSION
From the above report, it has been presumed that Brexit has major affects the
organizations. The impact can be alluded to as positive and negative. In the given investigation it
is characterized that how Brexit influenced on exchange and import or fare of products and
ventures on the grounds that a large number of firms are confronting different issues and some
monetary emergencies. In the UK, impose rates and obligations has expanded and it is hard to
make due in the extreme rivalry.
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REFERENCES
Books and journals:
Bergin, A., and et. al., 2016. Modelling the medium to long term potential macroeconomic
impact of Brexit on Ireland (No. 548). ESRI Working Paper.
Gudgin, G., and et. al., 2017. The role of gravity models in estimating the economic impact of
Brexit. Centre for Business Research, University of Cambridge.
Gudgin, G., and et. al., 2018. The macro-economic impact of Brexit: using the CBR macro-
economic model of the UK economy (UKMOD). Journal of Self-Governance and
Management Economics. 6(2). pp.7-49.
Nunez-Ferrer, J. and Rinaldi, D., 2016. The Impact of Brexit on the EU Budget: A non-
catastrophic event.
Portes, J. and Forte, G., 2017. The economic impact of Brexit-induced reductions in migration.
Oxford Review of Economic Policy. 33(suppl_1). pp.S31-S44.
Whitman, R. G., 2017. Devolved external affairs: the impact of Brexit. Chatham House.