A Critical Analysis: Potential Impact of Brexit on UK Business

This report provides a critical analysis of the potential impact of Brexit on UK businesses. It begins with an introduction that outlines the historical context of the referendum and its immediate effects on the UK economy, including the decline of the pound. The main body of the report examines various impacts on different business sectors, discussing both positive and negative consequences. It explores the effects on trade, foreign investment, and labor, citing examples from companies such as Dyson and Nissan. The report also considers the implications of immigration changes and the need for new trade agreements. The conclusion summarizes the key findings, emphasizing the complex and multifaceted effects of Brexit on business profitability, productivity, and investment. The report also references key academic sources to support its arguments.

CRITICALLY ANALYSE THE
POTENTIAL IMPACT OF
BREXIT ON BUSINESS

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
CONCLUSION................................................................................................................................2
REFERENCES................................................................................................................................3

INTRODUCTION
In historic referendum on June 23rd, 2016, Britain voted to leave the European Union.
After this, the pound (£) fell to its lowest since 1985, immediately after the result was declared.
UK is considered as one of the best countries to start a business, but that could change to the
unknown affects Brexit could bring. After Brexit in UK, it has been made great impact on its
multiple factors positively and negatively in both aspects. In addition to this, the report will be
discussed in the major affects of Brexit on several business sector in UK. The investigation will
also be discussed about possible reduction of foreign investment in the nation and also it makes
impact on the free to make trade agreements to business deals with countries around the world.
MAIN BODY
It can be said that, various aspects can be seen in UK and EU, which has been made great
impact on business environment of both countries (Bratton and Gold, 2017). Different-different
peoples has given several statements on impact of Brexit on business'. The founder of Dyson, the
British company that makes high end vacuum cleaners and other household items. The company
has reported that the sharp increasing rate in the profitability of company in industry. Because of
the falling of the pound, the company has been exporting its products and services in foreign
market at cheaper rate. So it makes negative impact on profitability of business. As per the
company owner has said, international sales are raising up for smaller companies. As per the
influences of Brexit the luxury car service provider are looking forwards to cheaper to foreign
buyer. The auto-mobile sector also being affected from Brexit in the UK, Nissan a Japanese
auto-maker that is one of Britain's largest overseas employee, has said that, they will be
increasing in car production volume in Britain in case of protecting itself form negative impact
of Brexit in UK. As per the statistics, in 2015 The UK has exported 133 billion Euros of goods to
the rest of the EU (McCullagh, 2017). It can be said that, the UK is experiencing losses of billion
after implementing of referendum in the nation. The annual immigration of the European Union
has more than double since 2012,.immigration from the EU is boosting up the current workforce
of the company year by year. The most likely affect has been seen that, one nation's lower skilled
employees are entering into other country's employment and making impact on the higher skilled
employees in the country. It is being cause for low-wages sector heavily dependent on migrant of
high skilled labour. It has been seen that, multiple numbers of employees has been stopped to
immigrate from UK to EU after Brexit.
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Apart from it, the official statistics shows that the EU is the destination for about half of
all British good exports, so it can be said that, Brexit has generated advantages for both sides in
continuing a close commercial arrangement in case of gaining proper profitability in the market.
In addition to this, in the European Union has been reached to the highest benefits of
manufacturing costing of various industries in the nation. In case of its effect on it, both countries
are increasing more dependent on whether the united kingdom agrees a trading agreement with
the European Union and the nature of any such agreement (Ford, 2016). After Brexit policies
implication on both countries, it has been seen that, the trading policies concerning about to
changing in its various business industries in the nation. Hence, it could be said that, Brexit has
been made great impact on productivity and profitability of various businesses.
CONCLUSION
From the above analysis, it can be concluded that, Brexit has been made great impact on
the profitability and productivity of the business section in UK and EU both countries. The report
also concludes that, mots of manufacturing and import and export policies of both counties.
Brexit is only likely to have a limited impact on Britain's productivity. The major improvement
has been seen in the case of business investment which shows little connection with political
developments. Foreign investment is raising up in both nations after applying the direct
investment in Britain votes to leave the European Union. In addition to this, this investigation
also concludes about after decision of UK to leaving EU, the British government has saved 10
billion per year on investment on its contribution to the European unoun's.
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REFERENCES
Books and Journals
Bratton, J. and Gold, J., 2017. Human resource management: theory and practice. Palgrave.
Ford, M., 2016. The Impact of Brexit on UK Labour Law. International Journal of Comparative
Labour Law and Industrial Relations. 32. 4. pp. 473-495.
McCullagh, K., 2017. Brexit: potential trade and data implications for digital and ‘f
intech’industries. International Data Privacy Law. 7. 1. pp. 3-21.
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