Analyzing the Impact of Brexit on Businesses Operating in the UK

This essay explores the multifaceted impact of Brexit on businesses operating within the United Kingdom. It delves into how the decision to leave the European Union has affected various sectors, including finance, technology, manufacturing, and food industries. The analysis covers the challenges faced by businesses, such as increased bureaucracy, fluctuating exchange rates, and supply chain disruptions. Furthermore, it examines the broader economic consequences, including reduced trade activities, decreased profitability, and impacts on per capita income. The essay concludes that Brexit has significantly affected the UK's business landscape and overall economy, highlighting the need for strategic adaptation and policy adjustments.

Running head: IMPACT OF BREXIT ON BUSINESSES IN UK
IMPACT OF BREXIT ON BUSINESSES IN UK
Name of the Student
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Author Note

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Introduction
Brexit is considered to be a process which is based on the withdrawal of the UK from
European Union or the EU. The referendum based on Brexit was thereby signed by the
United Kingdom in the year 2016. Most part of the voters have therefore voted against
staying in the European Union in the year 2017. The United Kingdom will ultimately leave
the EU in 2019 after the agreement will end (Coulter and Hancké 2016). The permanent
membership of the European Union is thereby left by the country due to lack of confidence in
the policies that have been developed by the body.
The essay will be based on the ways by which the end of membership in the European
Union is able to affect the organizations which operate in the United Kingdom. The
operations of the business based organizations and the ways by which the companies have
changed their policies will be analysed in the essay.
Discussion based on the challenges faced by UK after Brexit
The result which has been developed from the British referendum has been able to
shock the entire world and the operations of business organizations in the world as well. The
official withdrawal of the country has however not yet taken place from the EU. The different
legal conditions cannot be estimated and the ways by which the organizations are affected by
the changes also are not estimated in an effective manner. The trade based activities will be
affected in a huge manner by the Brexit based referendum (Crafts 2016).
According to Cumming and Zahra (2016), the exit of the United Kingdom from the
EU will be able to affect the organizations and their policies. The changes that will take place
in the country will not be immediate. The agreements that will thereby be made in the
countries will be effective after two years of the actual announcement of Brexit has been

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made. The actual agreements will thereby be negotiated among the parties after the country
has left the European Union. The regulatory laws that have been formed in the United
Kingdom need to correspond in an effective manner with the laws that are developed in the
European Union.
As discussed by Dhingra, Machin and Overman (2017), the organizations that operate
in the United Kingdom will thereby be affected by different factors that include, the increase
in levels of bureaucracy and the administrative charges as well. The fluctuations that take
place on the exchange based rates are also able to influence the competition based pressure
and the pricing of the products and services as well. The revaluation based activities of the
supply chains are also an important part of the risk assessment process in the organizations in
UK. The logistics based costs of the organizations are also affected in a huge manner by the
changes that take place in the United Kingdom due to its exit from the EU.
The economy and the organizations in the country are affected in a huge manner by
the exit based decision that has been taken by the UK. The interest based rates of the banks
have also increased for first time in the last ten years. The growth of wages in the country
was however stagnant in nature. The performance that has been depicted by the economy of
UK has been affected in an adverse manner after the exit based decision has taken place
(Fingleton et al. 2017).
As argued by Hatzigeorgiou and Lodefalk (2016), the country has now become worst
performer in the European Union. The government of the country has thereby invested huge
amounts in order to boost the economy of the country in an effective manner. The investment
that was made in different business organizations has reduced in the year 2017. The
expansion of the economy of the UK had taken place by a rate of 0.4% in third quarter of a
year.

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Figure 1 – Effect of Brexit on the economy
Source - (Independent.co.uk, 2018)
The different sectors of business have been affected in a huge manner by the exit
based decision that has been taken by the UK. The banking sector of the United Kingdom has
been affected in an adverse manner after the exit decision has been made. More than 10,000
finance based jobs have been lost after the exit. The financial organization named the
Goldman Sachs has been quite vocal about the effects of the exit of UK. The technology
based sector of the country has also been affected in an adverse manner by the decision of
exit (Howarth and Quaglia 2017).
Many questions have thereby been raised based on the status of the country as
technology capital of Europe. The services that are provided to the European clients by the

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different technology based organizations in the United Kingdom are also affected by the exit
of the country from EU. Many different organizations are however still able to endorse
London as the technology based hub. The new London based office of Facebook was opened
which has been able to add more than 800 jobs in the technology sector of the country.
London is thereby being considered as the technology hub for the company outside its
operations in the United States (Sampson 2017).
According to Srovnalikova and Razinskaite (2017), the Brexit decision which has
thereby been taken by the country has also been able to increase the different tariffs by 4.5
billion Pounds. The proper trade based deals that have thereby been made in the country are
able to damage the operations of the industry. The profit based levels in the car industry had
been disastrous in nature. The production facilities which are located in the country are also
being planned to be shifted in order to regulate the profits and the operations. Brexit has
further been able to affect the global construction based industry in the manufacturing based
sector.
The movement of labour in a free manner gas been restricted which has been able to
affect the profitability based levels of the organizations in the manufacturing sector. The
construction based workers have started leaving the United Kingdom after the Brexit based
decision has been taken. The loss of access of Britain from the European market has led to
the loss of jobs in an effective manner. Another industry which has been affected by the
Brexit decision is the drinks and food based industry of the country (Independent.co.uk,
2018). The organizations have thereby started reducing the sizes of the products. The portion
based sizes of the products have been reduced by the organizations. The prices have remained
the same and the portions have been reduced in the process as well.

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Figure 2 – Effect of Brexit on food sector of UK
Source - (Independent.co.uk, 2018)
For example, the organization named Jaffa Cakes in some of the boxes in the month
of September. The Freddo bars of Cadbury’s and the Haribo has also become much more
expensive in nature. The prices of food in the UK based restaurants have also increased due
to the rise in the costs based on imports by around 20%. The pharmaceutical industry of the
country has been affected in a huge manner by the regulations which have been developed
after implementation of Brexit. Many concerns have thereby been raised after the
implementation of Brexit related to the rise in prices in the development of different areas
(Independent.co.uk, 2018).

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The design and architecture industry has been affected after the decision related to
exit which has been taken by the United Kingdom. The export based activities have been
reduced after the United Kingdom had decided to exit from the EU. The British organizations
had also lost more than 73 million pounds of the export based earnings. The sector will be
affected in a huge manner by the ways by which the United Kingdom had made an exit from
the European Union (Independent.co.uk, 2018). The position that has been developed by the
United Kingdom as the global hub of architecture has been jeopardised in a huge manner by
the exit which has taken place by the country. The export based earnings of the country has
thereby been lost due to the exit.
The different sectors of the United Kingdom and their business activities have been
affected by the Brexit based decision. The economy of the country also has been affected in
an adverse manner by the decision of leaving the membership of EU. The trade related
activities will be reduced and profitability has also been reduced in a huge manner. The per
capita based income of the country has also been reduced in a huge manner by the Brexit
related decision (Srovnalikova and Razinskaite 2017).
Conclusion
The essay can be concluded by stating that the Brexit based decision that has been
taken by the United Kingdom has affected different business based sectors of the country. On
the other hand, the economy of the country has been affected in a negative manner due to the
lack of effective profitability. The lack of income based levels of the country have been able
to cause major issues in the ways by which the economy operates. The trade activities in the
country have also reduced in the process.

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References
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[online] The Independent. Available at:
https://www.independent.co.uk/news/business/news/brexit-economy-sterling-currency-
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