Contemporary Business Environment: Brexit's Consequences on UK

This report provides a comprehensive analysis of Brexit, examining its origins, current position, and the various obstacles it has faced. It delves into the economic consequences, including the impact on import industries, advantages and disadvantages, and effects on various sectors. The report discusses the debate surrounding Brexit, the positions of key figures, and the future of Brexit, exploring both potential positive and negative outcomes. It also highlights the effects of Brexit on electricity and gas prices, travel regulations, and the housing market. Furthermore, it examines the impact on UK trade with the European Union, the advantages and disadvantages of Brexit, and its influence on industries. The conclusion summarizes the key findings, emphasizing the multifaceted nature of Brexit's impact on the UK economy.

Contemporary business
environment

Table of Contents
INTRODUCTION................................................................................................................................3
CONCLUSION....................................................................................................................................7
REFERENCES.....................................................................................................................................8

INTRODUCTION
Brexit is the abbreviation of Britain & exit where Britain is separated from European union. This
term was given by Lawyer Peter Wilding. This report gives the brief description of Brexit, current
position of Brexit, various obstacles faced by Brexit, effects, consequences, future of Brexit.
Moreover, this report also addresses the Import industry UK and Brexit, the various advantages &
disadvantages of Brexit and Impact of Brexit on industries (Colantone and Stanig, 2018).
Debate of Brexit
The combination of Britain & exit can be termed as Brexit. This term was formulated in order to
separate Britain from European union. This separation was wanted by Britain to change its
relationship of trade unions, migration & security. People who are against Brexit were David
Cameron, Barack Obama etc. while those who were in favour of Brexit are Boris Johnson. Britain
has been debating on cons & pro of membership in EU since the idea of Brexit was found. The first
voting was on membership in 1975 was held in European Economic Community, just 3 years after
67% voters supports stay in bloc. Britain public voted on June 23, 2016 & however, even not
properly defined Brexit won by 52% votes (Clarke, Goodwin and Whiteley, 2017). This did not
settle the debate yet still after the 3 years and thus, the debate still remain unanswered.
Position of Brexit
UK wants to leave EU after 46 years of British membership. EU is political & economic partnership
of 28 countries. On last Thursday EU & UK announced an agreement on revised exit deal. The
northern Ireland & envisages a clear separation of United kingdom with European Union which was
stuck by Theresa May. This deal was altered by previous negotiated arrangement. On Saturday
session, United Kingdom might crash out of European union a without deal was concerned by UK
house of commons which has given vote to delay approve of agreement till legislation is necessary
to implement. For preventing no deal on Britain exit from European union, this forces the PM to
seek delay, this force came to be known as Benn Act.
Define Brexit.
The combination of “Britain” & “exit” is abbreviated as Brexit. Lawyer Peter Wilding derived this
word 4 year ago the decision to vote for United Kingdom to separate or leave European Union held.
The European union is the combination of 52 countries which were bound together after the world
war second, to facilitate trade, migration, import & export within the countries under EU.
Obstacles of Brexit
Backstop 'bridge' UK wide
It was opposed by European Union. UK's proposal to avoid hard border between republic of Ireland
& northern Ireland is a bridge. For temporary customs' arrangement 'bridge' was the term used by
officials.

The backstop 'bridge' time limited
this was opposed by the European union, Brexit MPs. The people in the favour of Brexit would not
able to tolerate de facto custom union for longer period, as it will prohibit the united kingdoms
room for manoeuvrer while strike free trading deal with countries not belongs to European union.
Moreover, some people favouring Brexit still opposes this proposal, with/without limit of time.
The backstop regulatory checks
The backdrop regulatory check was opposed by the DUP. The other element of united kingdom
proposal of backstop is for London. This proposal accepts that some European union regulations are
abided on Ireland in the areas of agriculture and food to break the border between Northern Ireland
& its republic.
Future relationships Theresa May's Chequers plan
The future relationship by Theresa may chequers plan was opposed by the European union, people
favouring MPs & labour party (Inglehart and Norris, 2016). The potential solution to this obstacle is
fudging the future relationships & hopes.
Future relationship Blind Brexit
This obstacle of Brexit was opposed by Theresa May, the labour party, Tory remainders & some
Brexit favouring people. The potential solution to this obstacle is hope MPs blink.
Value of Brexit.
It's a complex picture, UK exports has become cheaper but importing goods & holidays became
expensive since June 2016. Due to decline of value of pound, Britishers living abroad and
withdrawing UK pension are got suffered. Exporter itself are the importers for buying raw material
such as copper, oil etc. are suffered due to decline of value of pound after Brexit. Thus, it has been
seen that sharp decline in the value of pound has been seen immediately after Brexit voting
consequence of Brexit
In no-deal Brexit which was favoured by PM Boris. As without trading agreements, airlines would
be grounded & ports will be blocked and thus, importing of drugs and food will run short in
amount. Johnson awared for such outcomes. Opponent of Johnson opposed voters are not
understanding the hardship of Brexit. The various consequence of no deal Brexit are cost of exports
will increase. Larger tariff will increase price of import in United Kingdom because 1/3 of the food
was coming from European union. And high price of imports will create inflations & lowering the
standards living of residents of united kingdom. Consequences of hard Brexit are : UK will lose the
advantage of European union's state-of-the-art technology. Due to Brexit Britain will not get
benefits of advantages European union grants to their members i.e. energy, research & development
& environmental protection. Moreover, companies of United kingdom would lose the chance of
taking public contracts in any European union country.

Effects of Brexit
Electricity & gas price may get higher
due to decline in the value of pound it is obvious their will be slight increase in the price of the
electricity & supplies of gas. United kingdom mainly imports natural gas from Norway, although it
is not member of EU but still Norway and UK has to trade in current form regardless.
Extra measures to be taken while travelling Europe
The cost of visa and application of travel has increased to many folds. Some strict rules have been
applicable by the government while crossing European union borders are that the individual must
have a return ticket & should have enough money to stay (Menon and Salter, 2016). Several strict
measures were applicable such that European health cover, travel, pets, bank cards etc.
UK citizen living abroad has to take extra measures
Due to Brexit, a further funding of euro 434m was announced by government which includes
strengthen the process to deal with shortage, making changes in regulatory requirement, creation of
buffer stock, extra space for medicines etc.
import from EU may get more expensive
Earlier, for movement of goods and people do not include paying of taxes, duties & custom checks.
But due to the application of Brexit, a new rule has applied which says United Kingdom businesses
has to pay duties for trading with European Union just same as the rest of the world.
House price may get affected.
Brixit brought rise of house price in United Kingdom has become stable since the last few years.
Which shows that there is nothing any advantage in investing on the property in Britain as the
housing market in pretty much flat-lining.
slight delays at some ports & motorways
More than 85 percent of the trade through main channels are not ready. As they didn't want to pay
customs and has to face the queue of more than 2-3 days.
Students studying in both states may get affected due to uncertainty
As many students of EU are studying in UK and vice versa, it is difficult for them to cope up with
the issues of Brexit and thus they had faced the problem of uncertainty
Future of Brexit
Future of Brexit could have both positive and negative outcomes. Due to Brexit united kingdom has
to make various new trade rules and policies to survive in the market. The future of Brexit could be
worst also, as similarly to Britain other countries may also demand for separation from the
European union. This might results in the destruction of complete European union and thus no
member will be stay left in the European union. If more and more countries demand for separation
then the cost of trade, migration of people, goods & services, everything will get greatly affected

(Bachmann and Sidaway, 2016).
Import industry UK and Brexit
On trade industry of UK and Brexit, it has been observed since the past years that united kingdom
and European union are yet the largest trading partners. As around 44 percent of the goods or raw
materials are exported from United Kingdom to the European union while on the other hand around
53% imported goods by united kingdom come from European union member states, which shows
Brexit has both good & bad consequences for business. The import industry of United Kingdom &
Brexit get benefited due to weaker pound by doing more business with European union. As a large
paperwork is involved in the trading, which proves to be complex supply chain for small & medium
entrepreneurs to whom business would become almost impossible.
Advantages & disadvantages of Brexit
The various pros or advantages of Brexit are as follows
Immediate cost saving is experienced by the country due to Brexit, the emphasis of trade for Britain
will be shifted by Brexit, the sovereignty of Britain is established by Brexit, the issue of forced
immigrations associated with European union will be reduced by Brexit, the possibility of large
number of jobs are offered by Brexit there is a great improvement in the border security due to
application Brexit, the issue of bureaucracy has also been stopped due to Brexit and various
additional saving opportunities were also been created due to Brexit.
The various cons or disadvantages of Brexit are as follows
The protection of safe workplace, maternity leaves, equal pay are all will get eliminated due to
application of Brexit in United Kingdom, the perspective of Britain as the gateway to the European
countries will going to be changed due to Brexit, a huge shortage of labour will be seen as the
results of Brexit, intelligence information which was earlier generated by the European union but
now the united kingdom will leave prone to such important intelligence informations, the amount of
foreign investments which earlier Britain was receiving will be reduced by Brexit (Sampson, 2017).
European Union rules & regulations are still subjected to be enforced on Britain due to Brexit. The
protection to various rights earlier given for animals, health & food may get reversed due to the
application of Brexit in United Kingdom, Britishers still living in the European union member states
are forced to come back home under the pressure of Brexit, this partition of Britain from European
Union will create higher skilled job openings which would, might remain unfilled & lastly, Brexit
will result in lost of Britain over United States as a primary trading partner due to the cause of
Brexit. Energy bill will rise due to cause of Brexit.
Impact of Brexit on industries
The various impacts of Brexit various terms of industries are
Due to economic uncertainty consumption of the commodities get reduced thus this has brought a

negative impact of the Brexit, industries get to generate fewer revenues for manufacturing for their
customers, the business strategies are also got affected due to economic unpredictability by
hindering decision-making latent which has lead to reduce the innovation and growth. New rule &
regulation has confused the traders in trading easily as earlier. Cost of tariff has also been increased
which has negative impact on trade. Input costs has got higher due to devaluation of pounds.
Moreover, some positive impacts are also associated with the Brexit on industries as changes to
access markets. Innovative talents are recognized, increase in export competitiveness due to
currency devaluation, increase in opportunity for united kingdom firms to expand in European
union to gain more profits and increase their market (Dhingra, Sampson and Reenen, 2016).
CONCLUSION
This report can be summarized as The combination of “Britain” & “exit” is abbreviated as Brexit.
Lawyer Peter Wilding derived this word 4 year ago the decision to vote for United Kingdom to
separate or leave European Union held. In this report, it has been shown the brief description of
Brexit, current position of Brexit, various obstacles faced by Brexit, effects, consequences, future of
Brexit. Moreover, this report has also described the Import industry on UK and Brexit, the various
advantages & disadvantages of Brexit and Impact of Brexit on industries.

REFERENCES
Books and journals
Clarke, Goodwin and Whiteley, 2017. Brexit. Cambridge University Press.
Colantone and Stanig, P., 2018. Global competition and Brexit. American political science
review, 112(2), pp.201-218.
Inglehart, R.F. and Norris, P., 2016. Trump, Brexit, and the rise of populism: Economic have-nots
and cultural backlash.
Menon, A. and Salter, J.P., 2016. Brexit: initial reflections. International Affairs, 92(6), pp.1297-
1318.
Bachmann, V. and Sidaway, J.D., 2016. Brexit geopolitics. Geoforum, 77, pp.47-50.
Sampson, T., 2017. Brexit: the economics of international disintegration. Journal of Economic
perspectives, 31(4), pp.163-84.
Dhingra, Sampson and Reenen, J.V., 2016. The consequences of Brexit for UK trade and living
standards.