A Comprehensive Report: Brexit's Economic Effects on UK and EU Trade

This report delves into the economic consequences of Brexit, focusing on its impact on trade in services, the history of the EU, and the challenges faced by the UK as a member nation's economy. It analyzes the effects of Brexit on both the UK and other member nations' economies, examining trade and investment, the movement of goods and services, and financial impacts. The report highlights the complexities of international trade, the importance of market access, and the implications of the single market. It concludes by emphasizing the need for effective decision-making and negotiation to mitigate negative impacts and ensure sustainable economic growth. The report provides a detailed overview of the business issues arising from Brexit and its broader effects on the global economy.

Business issue

Table of Contents
INTRODUCTION.................................................................................................................................3
MAIN BODY........................................................................................................................................3
Trade in services................................................................................................................................3
Brief history of EU...........................................................................................................................4
Challenges facing the UK as member nation’s economy...................................................................5
Impact of Brexit on UK & other member nation’s economy.............................................................5
CONCLUSION.....................................................................................................................................7
References.............................................................................................................................................8
Books & Journal................................................................................................................................8

INTRODUCTION
In the business world, problems, issues and risks are meant to occur on daily basis and
at every phase of business. Business issues are of two types’ long term and term which faced
by organisation and stops them from achieving goals and objectives. There various business
issues such as globalization, innovation, government rules and regulations, complexity of
work, diversity etc. All these issues slow down the growth of business and overall
development. In UK, issues between UK government and EU have been rising and which is
creating problem for business to carry out the activities. Brexit has a deep impact in
international trade with Europe. This report includes impact of BREXIT on trade in services,
history of EU, challenges facing the UK as member of EU and impact of Brexit in UK and
other members d nation’s economy. Thus, when doing the business UK as well as EU assures
that it being done under the rules as well as regulations of Brexit so that problems and
conflicts do not arise in near future.
MAIN BODY
Brexit has been in the highlights every time in in business sector. It is defined as
leaving of UK from EU. Impact of Brexit has affected the many industries at depth & distract
them form their core activities. It is important to be aware about laws and regulations of both
the countries so that business functions, operations and activities are carried out in proper
manner. Also, it has been analysing that many times negotiations has been made between bot
the countries (Prowle, 20160).
UK wants a positive relationship with EU so that both countries are able to provide
the huge contribution to their economy. Thus, it is crucial to have proper knowledge
regarding the BREXIT so that decision regarding the business is carried out in appropriate
way. International trade with EUROPE has been affected at deeper level. This is because of
the company’s trade their business in Europe and has major profit ratio form the country. EU
and UK services of combined can contribute a rapid development of business sector
(Amankwah-Amoah, 2019).
Trade in services
Services are essential for every business and are used by market at broader level.
Thus, hey have more importance in market and which are used at wider scale. There are
many services which are used by both countries from their inert-course market such as foods,
raw materials, airline services etc. It is seen that services percentage is around 81 % of UK
economic output and 45% of UK exports & it is growing as well as enlarging at larger level.

Many discussions have been made about relationship with EU and the trade in services & its
future. Furthermore, change in EU in terms of trade has impact on larger sector of economy.
Complexity- In relation with service sector, they have complexity in their functional
areas such as professional and business services. Also, there many other services which
revolves around both countries such as broadcasting, education, retail etc. Tariff and non-
tariff barriers also are becoming more complex which makes it difficult to enhance the trade
in services. Thus, to increase and enhance the trade in services countries have remove the
restrictions and many regulations by which it will be easier for both the government to have
freedom in their trade in service (Shroff, 2016).
Market access- Further, UK trade in service means that they will have to face and
deal with many changes & that affects the sectors of economy at deeper scale. It has been
analysed that services of UK economy are crucial for future growth as because of services in
UK are significant for both consumer as well as business. Therefore, it is important for them
to access internal market so that UK services are carried out in effective manner and
international trade within Europe is done effectively. Market access is crucial so that trade is
done at wider level and in proper manner (Estrin, 2018).
Single market- Many barriers stay in EU and which depicts that single market is
crucial for trade in services. Firms and individual are allowed to run a business in single
market from anywhere and at place. They are also known as member state that has authority
to trade their services in appropriate manner. Single market is the safest way running the
business within both the countries. As member state can trade their services without affecting
the legislations or rules of Brexit.
After a brief analysis of above matter, it is specified that impact of Brexit has slow
down the growth and made service sector more difficult to access foreign markets on easier
way. Furthermore, it is examined that government has to manage their negotiation so that
business and economy sector are being carried out properly. Brexit has affected the UK
services in both positive as well as negative way. New changes are adopted by government in
terms of international trade and which is to be evaluated by business so that goals and
objectives are achieved properly. Moreover, it is also seen that these also affects the
infrastructure of businesses and making it difficult for them to adjust in the new environment.
Also, negotiation regarding regulations of business is to be done in most effective so that both
countries are able to run their economy in most suitable way.
It also will have deep impact on economies of both countries EU as well as UK. So,
running the business in these countries is to be done under the policies & procedures of Both

EU and UK region so that decision making regarding the trade in service is done
appropriately.
Brief history of EU
European Union comprises of 27 members countries and eliminates all control amongst
the members. The order with open gates allows flow of goods, services and people as free.
Which means that any manufactured products in EU country has the right to sold to other
member of country without imposing of facing tariff and non-tariff duties or tax. Also, many
practitioners related to tourism, travel, environment, health and fitness, banking etc. can
operate their activities anywhere in other country too.\ (Malyuga, 2018).
European Union is government by three bodies which are national government, people
and European Commission is the EU staff. European Union uses the second most sue
currency in world which is EURO and it comes under the U.S dollar. The Euro currency has
not been accepted or say adopted by many countries as the Britain holds pound. Moreover, to
free the passage between countries The Schengen Area was established so that people can
easily, move passage from one place to another. Countries such as Austria, Belgium,
Denmark, Switzerland etc. are some the countries which do not require any passport or visa
and passages are easily moved.
Further in June 2016, implication of Brexit created a, massive distance and between UK
and trade business. Impact of BR is more to Britain rather than European Union. But loss to
economies was amongst both the countries such as they were losing around 10 to 8 % of
GDP (Chechelashvili, 2019).
Challenges facing the UK as member nation’s economy
UK negotiation with EU has led to fall in economy of both countries. There many
consequences which are faced by other nation economy also. Challenges such as technology,
trade, climate change etc. are some of the major challenges which have slow down the
growth of UK as well as nations economy wider level. Thus, policymakers & regulatory
authorities around the world have to face the challenges of Brexit and experience it in most
appropriate way. Political as well as economic challenges are making changes to
infrastructure of business at larger level. UK faces many challenges which are discussed
below-
 Restrictions in trade of many business sector as well as services.
 High duty overtaxes by EU over the mobility goods and products by Britain
 Further, small businesses are unable to provide or roll out their capital amongst the
other countries because of rule & regulations of Brexit.
 Frequent changes of Brexit affects the decision making process

 Economy of UK is slow moving because of structural changes and which results in
use of resources in unutilised manner.
 Complicate cross border and financial laws are also faced by UK as well as member
and it is not possible for them to focus their operations as they invest their time in
following rules as well as regulations.
 Limited resources and capital for business as well as other societal activities and
which restrict them from being raising huge capital form financial institution s such as
World Bank etc.
After analysis of above paragraph, it has been stated that challenges faced by UK and
nation members are to be examined and understood so that correct measures as well as
decision making is done. It is time consuming process but needs to be adopted so that
problems faced by country are solved in appropriate manner. Furthermore, thus, the above
mentioned challenges are to be examined properly so that resources and other materials and
information related business & other sectors are to be utilised in most efficient manner
(Stephenson, 2019).
Impact of Brexit on UK & other member nation’s economy
UK is globalised country and which means that nations member also reside the same
country. Implication of BR has changed the overall structure of economy which also means
that GDP of country has reduced and it is difficult for nation to accept both rules as well as
regulation of both the sides.
Trade and investment- With start of BR, UK has failed to achieve the free trade and
investment with EU and has created a negative impact on the both the country at deeper level.
This also results in higher taxes and more regulations on which again cause a problem for
business sector in UK (McCullagh, 2017).
TO Movement- WTO has being moved the UK away from EU standards and
procedures & which results in increase in high tariff rates or standards at higher amount
causing the issue to UK economy & businesses to sell services to EU nations.
Zero to positive- Further, UK is focusing towards zero sums to positive theory
approach and which also says that there are chances of political system. The situation is in
favourable as most of the EU members wants to be the do their business activity with UK.
Financial effect- As the economy of country has gone down, GDP has also reduced
& through which there has also been a deeper effect on financial position of nation. This has
also created a huge impact on different sectors.
Implication of Brexit has divided these two broad nations which have led to decrease
in economy at depth. Thus, after examining the above discussed impacts of BR on UK it is
seen that negotiation is being done but decision making is to more appropriate. Moreover, it
took time to select the most suitable measures.

CONCLUSION
After a brief analysis of above report, it is concluded that business issues are essential
for growth and overall development. Brexit and trade in services has been mainly focused
which depicts that all they play vital role in business sector. Further, in this contemporary
world it important to be aware about such issue as well as conflicts so that it is easy to do
decision making in most effective way. Thus, in this present report a brief knowledge about
UK and EU has been drawn exclusively.

References
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