Critical Analysis: Brexit, Commonwealth Trade, and Finance in the UK

This report provides a critical analysis of the implications of Brexit on the UK's trade, investment, and financial sectors, with a specific focus on the changing global trade landscape and the UK's relationship with Commonwealth countries. The report examines key trends in goods and services between Commonwealth nations post-Brexit, highlighting the expansion of trade and economic growth. It explores the impact of Brexit on the UK's financial sector, including regulatory implications, economic impacts on the City, and the implications for cross-border trading. The report also evaluates the potential challenges and opportunities for multinational enterprises in a post-Brexit environment, considering factors such as trade regulations, foreign direct investment, and the overall competitiveness of the UK economy. The analysis covers trade potential and future prospects, emphasizing the importance of logistics and foreign direct investment for economic development. The report concludes by summarizing the key findings and offering insights into the future of trade and finance in the UK within the context of Brexit.

CRITICAL

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK...............................................................................................................................................1
1. Implications of key trends of goods and services in between Commonwealth countries. .1
2. Implications of Brexit on trade and investment within in finance sector in the UK..........5
3. Critical evaluation of possible challenges and opportunities of a multinational enterprise in
relation to change the global trade landscape.........................................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
The period of post Brexit was beneficial as there were large number of options which
were available to countries so that they can easily develop trade relationship with other countries
all around the world. After the period of Brexit, it was beneficial for UK countries in order to
reshape their policies while trade policies are growing in domestic factors and there was loss of
sovereignty and also autonomy of public (Altomonte, Colantone and Date, 2015). There was
high growth in economy concerns and also, climatic conditions were also changed which implies
changes in the global trading. The undermentioned report is based on period after Brexit and the
changing landscape in this global world. This factor is beneficial for the overall economy as it
results in development of overall nations.
TASK
1. Implications of key trends of goods and services in between Commonwealth countries
The concept of Intra Commonwealth is effective and it is growing rapidly in the economy
as it results in achieving growth and success for firms. According to the index ratios, goods
which were traded between different countries that were member nations are approximately $
600 billion. There was growth of nations after post Brexit which implies that all the members of
common wealth games are giving importance to each other.
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The intra common wealth trade is beneficial for all member countries as they are able to
expand their operations as there was higher growth in economy and people were able to easily
expand business transaction all around the globe. According to above graph, trading between
member countries was lower in 2000 but after post Brexit period, there was rise in the economic
conditions of the economy was gradually improved. There was higher growth noticed in the year
2013 but in the year 2013, this growth rates largely declines and it have significant impact on the
member nations.
The trading of goods and services between different Commonwealth countries is
beneficial for overall growth of economy as there were large number of employment
opportunities generated so that people of different nations can easily fulfil all the basic needs of
their life. The income level of people gradually increased and thus, it was beneficial for
achieving economic growth and development of overall nations. The commonwealth countries
are having their main focus on expanding their operations at international market so that all poor
countries that are not having money can easily trade with them and they can provide growth and
development for the overall economy. According to the views of Anderson, Juden and Rogerson,
(2016) it has been identified that if there is an open system identified which is valuable factor in
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Illustration 1: Intra- common wealth trade in goods
(Source: Intra- common wealth trade in goods, 2017)

order to reduce poverty ratios from the economy by maximising income level of people in the
economy. Most of the commonwealth countries are not importers of goods and services and their
GDP ratio is also very low.
According to indexes, Malaysia and Singapore are the highest exporters of commonwealth
countries and their Gross Domestic products levels are also very higher. Malaysia is highly
dependent on trading as they are importing and exporting goods between the member countries
which results in enhancing their overall growth factors. The neighbouring countries like
Malaysia and Singapore are listed among those countries which are largely dependent on trading
and there volume are twice of the GDP ratios of economy. These countries have achieving
success from their overall trading operations thus there were large number of jobs available to
people and they can easily earn money and get employed. This is the most important and
valuable factor which results in achieving growth and development for overall economy. These
countries are classified under gaining benefits of growth oriented economies.
According to the study reports which were generated by Royal Commonwealth society,
all commonwealth countries were able to achieve growth as they were gaining profitability of $4
billion from their overall operations of trading goods among different countries. The major
trends of goods which were imported among all commonwealth countries are valuable factors as
it results in enhancing overall growth factors and development of the nations as resources will be
properly utilised. Thus, it results in generating employment for people and they will earn money
which results in fulfilling all the basic needs of their life. The trading business was beneficial and
it has achieved growth from the year 2000 to 2015 as there was growth of overall economy as
people were earning money for their livelihood and gradually, the poverty ratios were declined
(Appleby, and Harrison, 2017). This is the major indicator of trading business and people were
earning which helps in fulfilling their basic needs and desires. All the commonwealth countries
are having values for each other and this is the most beneficial factor which results in enhancing
their overall profitability. The trading volume is generated by net exports less imports and this is
one of the important and valuable factors which helps in deciding the total number of trading.
After the period of post Brexit, there was higher competitive gains as Commonwealth
countries were able to earn higher growth and profitability from their overall business. They
were giving opportunities to smaller nations who were not having much finance in order to
expand their overall trading operations so that they can start trading with these countries in order
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to achieve growth and success in there operations. These commonwealth countries were able to
gain direct foreign investment and their ratios were higher before they were not affected by the
financial Crisis. The studies determined that ratios of foreign direct investment were much
higher. Thus, they were able to achieve higher profitability ratios from their overall business
operations of trading of goods and services between different countries.
The commonwealth countries represent a group of nations that are spread all around
globe and they have successfully contributed in growth and development of overall economy.
There were suggestions generated that if business is executed between common wealth countries
then it will result in achieving more comfort as members are able to earn huge amount of money
from their overall business operations (Cooper, 2017). The results were generated by
Econometric which have reflected that the bilateral partners are members of common wealth
countries and they are generating a large amount of money which is helpful for them in order to
achieve high direct foreign investment so that there can be growth of economy and the poverty
ratios will gradually decline. Another important factor is related with effect of common wealth
countries have to translate their overall effect into lower trading costs. While making comparison
with the other partners, commonwealth countries are gaining higher profitability ratios from their
overall business operations.
Trading potential and future prospects
There were substantial potential in order to maximise trading between different countries
who are commonwealth members. The trading of goods and services between different countries
were effective thus they were able to provide employment to large group of people thus poverty
ratios will be gradually declines. I there is improvements in the logistics factors then it may
result in effectively trading goods between various countries who are partners of one another. If
there is improvements in logistics sector then it have positive results on trading operations and
there will high foreign direct investment by which countries can develop plans in order to expand
their business operations as they will be recruiting people who will work effectively in order to
achieve growth and success in overall business operations.
2. Implication of Brexit on trade and investment within the finance sector in UK
The UK economy are having greatest benefits from the financial sector and the success of
different commonwealth countries the main theme of the debate is financial services in Brexit.
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The implication of trade and investment sector is identified by three different factors which are
related with the financial sector in UK and their pros and cons are evaluated below as:
Regulations Implication
The regulatory factor is very complex in financial terms. The global regulator authorities
are setting different types of rules and regulations on the other hand it is also argued that the
rules while are implemented by UK are much higher than those regulations which are set by
European Union. Brexit have reduced the stability of banking sector and there can be Crisis
which could affect the EU and UK regulatory plans and policies. There can also be a challenge
implemented which suggest that rules and regulations are implemented by analysing laws which
are formulated in UK.
There are solutions implied for the arguments which were executed in UK and single
marketing operations and these are the major and highest priority in negotiations factors which
were applicable at Brexit (Hatzigeorgiou and Lodefalk, 2016). The favourable outcomes are
linked with ability of UK to easily export all those factors which are linked with financial Crisis
and also EU and these are affecting the future decisions which were implemented by global
institutions and these were also reflected as the best opinions.
If there are any changes implemented then it results in adopting new rules and regulations
which are related with conducting business operations all around the European Union countries.
If there were any existence of UK then there were high chances that all those firms who wish to
perform their business operations all around European nations would be performing their
operations at those places where demands are higher and they had to follow all the rules and
regulations which were related which were implied in the starting of any financial year.
Economic impacts on City
All the cities which were involved in trading operations were most likely to be challenged
by the Brexit operations in very short time durations as these are enjoying the competitive
advantages thus attaining growth and success in their overall operations. There were high
ecosystems developed which were having capacities and the challenging services were effective
so they can easily replicate all those factors by which they are not able to achieve sustainable
positions in economy and their growth and profitability factors are also enhanced. There were
cases when there was planning done in order to make changes in the operations which were
related with arguments so that infrastructure can be changed which were related with conducting
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operations in the European zones and they were also supervising the courts of justice which were
linked with courts of Europe.
Another greatest impact were related with there was slowdown in the talent of European
Union that are coming from the overall working of the financial sectors. There can be barriers
created that could act as a weak points for UK like the requirements for visas and working
permits letters on the other hand there can be welcoming of the financial concerns.
Implications of cross border trading
One of the greatest risk factor is related with loss of rights and responsibilities of firms
which are located in UK and they are mostly focused on selling their services in states of
European Union. Different firms can adopt models like Swiss Banking so that their operations
can be controlled by subsidiaries without having any of the pass porting rights and
responsibilities (Hepburn and Teytelboym, 2017). Many of the business are having their overall
operations at European Union nations for example Dublin. The firms can gain knowledge for
their operations from the local business and there can also be dealings with the indirect obstacles
to trade in relations to single marketing business operations which is called as taxes.
Many of the business activities are mainly focusing on footprints in order to determine
their overall cost border operations and it is argued that the higher complexity factors are
resolved with the higher cost of business operations. There are various alternative options
available but then also some of the studies have reflected that there was significant reductions
noticed in Brexit in exporting of goods and services of financial concerns in European Union.
There are different opportunities available which are related with compensating all the
loss factors and there can be success gained if there are bilateral trade agreement conducted with
all the financial centres which are available in the economy. Example Singapore and Hong Kong
are having cultural ties with UK nations thus they are able to easily trade with other countries
and achieve growth and success in their overall business operations.
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3. Critical evaluation of possible challenges and opportunities of a multinational enterprise in
relation to changing global trade landscape
According to the views of Holmes, Rollo and Winters, (2016) It has been evaluated that the main
focus of every firms is linked with identifying all the challenges, the requirements of rules and
regulations which are implemented in different countries and the best practices are also identified
which are linked with executing all the modern plans and procedures in effective and planned
ways.
According to the conference which was held in 2017 in the month of October have
highlighted various growth and development programmes under various Brexit scene and they
are having significant impacts on the overall trading operations of exporting and importing
products from one country to another. Over the years all those firms who were facing different
challenges have identified the risk factors, challenges, investment and opportunities factors
which are linked with currently managing all the plans and procedures in the surveys which were
conducted for various industries.
All the results which was evaluated with the help of surveys and these are measured and
compared with those surveys which were conducted in the year 2016 and these are useful as they
are providing benchmarks for all the firms who are having trading business.
The major risk factors were linked with global trading factors which were related with No
access to the single market in European Union. There were different types of tariff and quotas
which were implied by government and there rates were constantly increasing thus firms were
not able to earn higher profitability in their overall business operations. According to reports
which were prepared there was comparison done about the rates of tariff which were applied on
business and there were different types of alternative sources which were taken into
considerations and there were different programmes noticed which were related with negotiation
in Brexit programmes.
The highest and the most important challenges are linked with managing all the
complexity factors which are having pressures in most effective ways. All the expectations in
relations to import and export of products should be greatly managed so that there can be higher
growth and development in the overall economic operations. If there is uncertainty in business
operations who are involved in global trading then there future planning and relations can be
greatly affected by these process and operations.
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According to views of Purdue, Huang and Economics, (2015) it has been stated that those
areas which were related with opportunities of development should be given the top most priority
in their overall operations. This is the major challenges for all those sectors who are involved in
supply chain operations and global trading operations. There should be awareness created about
the importance of all those factors which were related with flexibility in business operations so
firms can achieve competitive gains in those global market which are changing according to
uncertain conditions in the economy. The greatest opportunities are related with managing all the
factors in uncertain conditions so there can be higher growth and development of the overall
economy and they can easily achieve growth and success in their overall operations and there
can be opportunities in order to provide higher employment to people so they can easily fulfil all
the basic needs and necessities of their life.
There was a report developed which states the action planning template for all the traders
who are involved in business operations. There are various points evaluated which is reflected as
strong factors and these are very important factors in order to accept challenges for the firms and
they can easily move ahead by achieving competitive gains in their overall business operations
after the period of post Brexit (Secretariat, 2017). The challenges are very important factor for
firms as it results in implementing the global trading factors according to the modern tools and
techniques so firms can achieve effective outcome in relation to achieve competitive advantages
in this globalised world. All the challenges should be accepted effectively by all business as it
results in gaining success and enhancing the overall GDP ratios in the economy. Challenges are
evaluated as the pathways to success for every business in order to enhance the overall economy
and minimise the poverty ratios so there can be large number of job opportunities available for
people and they can fulfil all the basic necessities of their life. The trading business are useful in
order to export and import products from one country to another so that people can easily and
firms can develop competitive advantages at work places (Ramiah, Pham and Moosa, 2017).
As there were higher trading demand for UK business operations then the most important
factors are related with having flexibility working environment and the solutions should be
implemented effectively in relations to Brexit. All the firms who wants to move forward in their
overall business operations are not waiting for the post trading agreements and they were
applying the right and effective solutions in order to easily execute all the changes effectively by
using modern tools and techniques in their overall business operations. The competitive
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advantages can be achieved by firms if they are focusing on using new tools and techniques for
their business operations thus achieving higher competitive gains.
CONCLUSION
From the above report, it has been concluded that after the period of Brexit, firms were
able to achieve growth and success in the economy as they were involved in trading operations.
The period after Brexit was beneficial in order to remove poverty from the economy as there
were large number of employment opportunities available for people so that they can fulfil basic
necessities of their life. Also, it has been assessed that continuous changes are noticed in the
global trend landscape after the financial Crisis that were helpful for countries as they were able
to expand their overall business operations thus achieving higher profitability and also
competitive gains.
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REFERENCES
Books and Journals
Altomonte, C., Colantone, I. and Date, E.Z., 2015. Has globalisation ‘peaked’? Trade and GDP
growth in the post-crisis context.
Anderson, M., Juden, M. and Rogerson, A., 2016. After Brexit: New Opportunities for Global
Good in the National Interest. Policy Paper. 89.
Appleby, T. and Harrison, J., 2017. Brexit and the future of Scottish fisheries–key legal issues in
a changing regulatory landscape. Journal of Water Law. 25(3). pp.124-132.
Cooper, C., 2017. Don’t sweat the sweet stuff: how to manage in the new sugar order.
INTERNATIONAL SUGAR JOURNAL. 119(1426). pp.802-805.
Hatzigeorgiou, A. and Lodefalk, M., 2016. The Brexit Trade Disruption Revisited. The Estey
Centre Journal of International Law and Trade Policy. 17(1). pp.41-58.
Hepburn, C. and Teytelboym, A., 2017. Climate change policy after Brexit. Oxford Review of
Economic Policy. 33(suppl_1). pp.S144-S154.
Holmes, P., Rollo, J. and Winters, L.A., 2016. Negotiating the UK's post-Brexit trade
arrangements. National Institute Economic Review. 238(1). pp.R22-R30.
Lydgate, E., Rollo, J. and Wilkinson, R., 2016. The UK trade landscape after Brexit.
Lynch, B., 2017. The times they are a-changing. New Zealand International Review. 42(3). p.14.
Purdue, D., Huang, H. and Economics, N. T. M. A., 2015. Brexit and its Impact on the Irish
Economy. National Treasury Management Agency, Dublin.
Ramiah, V., Pham, H. N. and Moosa, I., 2017. The sectoral effects of Brexit on the British
economy: early evidence from the reaction of the stock market. Applied Economics.
49(26). pp.2508-2514.
Secretariat, C., 2017. Post-Brexit Trade with Small Developing Countries: Making it
Development-Friendly. Emerging Trade Issues for Small Developing Countries. pp.139-
150.
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