Impact of Brexit on Shipping Industry: A Business Environment Analysis

This presentation analyzes the business environment, specifically focusing on the impact of Brexit on the shipping industry and related microeconomic factors. The presentation begins with an introduction to the business environment and its influence on production. It then presents the core arguments of an article, highlighting the impact of soaring shipping prices on the cost of goods, specifically trampolines in the UK. The presentation explains the theories of demand and supply, illustrating how Brexit-related issues have affected shipping capacity and caused price increases. Furthermore, the presentation discusses the theory of cost and production, explaining how rising shipping costs impact production costs, productivity, sales, and overall business effectiveness. The conclusion summarizes the key points, emphasizing the negative economic consequences of these factors. References to supporting articles are also provided.

Individual Presentation

Table of Contents
 INTRODUCTION
 MAIN BODY
 The main arguments of the article
 Theory of demand and supply
 Theory of cost and production
 CONCLUSION 5
 REFERENCES

INTRODUCTION
 The term business environment refers to the aggregate total of people, company and other
forces which are outside the power of industry but it can put impact over production.
 It enables firm to execute their strategies of competitors and actions.
 This presentation is based on business environment which would discuss the microeconomic
factors.
 It will discuss the issues caused by Brexit and the long term consequences for shipping industry.
 There will be arguments based on such concept which refer to theory of demand and supply,
cost ad production with explanations related to article.

The main arguments of the article
 The major arguments is based on soaring shipping prices causing bounce in cost of
trampoline in UK.
 According to article it says the higher transportation cost and port congestion may mean
larger toys like trampoline, climbing frames and swings would be more expensive.

Theory of demand and supply
 The law of supply and demand is the theory of interaction
among the seller and source of buyer for the specific
resource.
 This theory elaborates the relationship between price of
conferred product and willingness of individuals to either
sell and buy.
 Similarly, as prices raise people will supply more and
demand less and vice versa in the circumstance of price
falls.

Continued
 From the articles it executes the same the demand for Chinese goods has soar upwards across
the world while placing difficulty for existing shipping capacity.
 This is the major issue which leads to higher shipping cause and putting impact over several
aspects in UK.
 The example of states Hauliers making effective use of this by charging higher pricing for
pulling the container from port to company's site in Mid Wales.
 Overall, such issues put effect on the supply and demand where various consequences take
place in the soaring of trampoline pricing which will became more expensive for the people of
UK.
 The low shipping or supply cost will provide more job opportunities for individuals.

Theory of cost and production
 The cost and production theory states the prices of object or
condition is concerned with sum of cost of resource which went into
making it.
 The cost is consisted of various factors of production such as labour,
capital or land and most crucial taxation.
 The relations of production and cost describe by the bigger and
complex production process i.e. labour, material etc. the higher
would be cost.
 When goods and services are efficiently produced on larger scale
with lower production cost, by such it concluded economy on scale.

Continued
 By the soaring of shipping cost as such the cost of raw materiel will increase by which
it impacts over high production cost.
 So in relevant to this for business it will enhance the cost due to rise ion production
cost.
 Whereas, the major impact would be on the productivity, sales, and the overall
effectivity of business.

CONCLUSION
 From the above presentation it has summarized about microeconomic factors.
 It had been discussed about the issues caused by Brexit and the long term consequences for
shipping industry.
 With the help of article provided it executes about soaring shipping cost due to several factors
concerning the Brexit and how it put the impact on the several aspects.
 Further, on the similar not the arguments are discussed with the concepts of referring to the
theory of demand and supply, cost ad production which describes with explanations related to
article about the negative outcomes and other indicators are putting negative consequences on
economy.

REFERENCES
 Eatwell, J., 2019. ‘Cost Of Production’And The Theory Of The Rate Of
Profit. Contributions to Political Economy. 38(1). pp.1-11.
 Hafezalkotob, A. and et.al., 2018. Wholesale-retail pricing strategies under market risk
and uncertain demand in supply chain using evolutionary game theory. Kybernetes.
 Jankovic, I., 2020. Opportunity Foregone: Ango-American Psychological Theory of
Cost. Mengerian Microeconomics, pp.49-81.