Brexit's Impact: A Comprehensive Management Report (Semester 1)

This report provides a comprehensive analysis of Brexit, examining the current position, debates, and potential options facing the UK. It delves into the effects of Brexit to date and in the near future, focusing on key areas such as the economy, unemployment, business investment, and the British pound. The report explores the challenges and opportunities presented by Brexit, offering insights into the decisions faced by the UK government and businesses. It highlights the impact on various sectors and the implications for future trade, investment, and employment. The analysis includes an overview of the transition phase, the withdrawal agreement, and the challenges associated with the Irish border. The report concludes with recommendations for navigating the complexities of Brexit and mitigating potential negative impacts, based on the current and anticipated scenarios. The report also highlights that the business investment has shown a continuous disappointing rate in UK after the EU referendum and companies are unwilling to invest.

Running head: MANAGEMENT
MANAGEMENT
Name of the student
Name of the university
Author note

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Table of contents
Introduction:................................................................................................................................3
Brexit:......................................................................................................................................3
Current positive overview and the debate based on the Brexit situation as well as the obstacles
faced by the UK people...............................................................................................................5
2/ possible options the UK faces:................................................................................................7
1. The overall Economy :...........................................................................................................12
2.Unemployment:..................................................................................................................12
3. Business:............................................................................................................................13
3.1 Companies:......................................................................................................................13
3.2 Companies are unwilling to invest:.................................................................................15
4. The British pound:.............................................................................................................16
4. Conclusions and Recommendations......................................................................................16
Refrences :.................................................................................................................................18

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Introduction:
Brexit:
The term Brexit indicates the increasing possibility of Britain for withdrawing the
business connection with the European Union.
It has been identified that due to the pros and cons, the idea for contributing in the
membership of the European community has been aroused. In the year 2013, the David
Cameron, who was the Prime minister promised the national referendum on European Union
membership so that the idea of setting question can be established.
In the year 2016 on 23rd June, after the UK vote, few numbers of UK people have voted
in favour of closing all the connection with the European Union. After the pro Brexit camp, near
about 51.9 % votes have been got against the 48.1% of vote for staying in European Union.

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In the year 2016 on 13th July, Theresa May has been appointed as the new leader of UK.
By guiding UK in the lengthy negotiation process, for leaving European Union, she has
performed her job.
The official process for leaving European Union has been started by the new leader by activating
the Article 50. The Article 50 is about the Treaty of Lisbon that outlines the process for stating
the right for leaving individually. In the words of Rothwell and Capurro (2019), there are total
numbers of t5 basic points have been mentioned in the Article 50, which are sufficient for
convincing people for leaving European Union. In the Article 50, the British Prime minister has
set the limit for 2 years for understanding the negation process in the Irish Border so that the
leaving and trading procedure can be completed within the expected schedule.

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After the completion of Brexit vote, in the year 2019 on 29th march, the new phrase namely
Transition phase has been introduced to the UK entrants. Depending on the mutual agreement
between the European Union and UK people, the result of negotiation has been driven.
Current positive overview and the debate based on the Brexit situation as well as the
obstacles faced by the UK people
After the completion of negotiation between the European Union and UK people, none of
the deals for highlighting the debate between the both the parties have been introduced so that
the withdrawal agreement can be properly implemented.

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In the year 2018, on November 14th , the deal has been approved by the EU leaders and
the British government ion which the separation as well as the policies and political declaration
of the withdrawal agreement has been clearly mentioned. In the same day, the declaration of the
nature and future of the ties between EU and UK has been clarified.
In the withdrawal agreement, in the page number of 585, the legal consequences as well
as the key issues of “divorce” has been highlighted. Here the financial obligations as well as the
citizen rights of the European people has been clarified, which has been discussed based on the
Trish border areas. Irish border is being considered as the land frontier between EU and UK. In
case of both the sides, the result of negotiation has Backstop the entire deal.
The Backstop deal is being considered as the insurance policy in which the Brexit treaty,
withdrawal agreement and the harder border policy in Ireland has been driven. It is true that the
retain policies are only being used in case of driving the overarching free trade deal between the
EU and UK countries. By continuing this, it can be said that in case of both the side of countries,
the different trade principles have been identified on the land frontier between Northern Ireland
and the Republic.
After the completion of Brexit vote, in the year 2019 on 29th march, the new phrase
namely Transition phase has been introduced to the UK entrants. Depending on the mutual
agreement between the European Union and UK people, the result of negotiation has been
driven.

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It cannot be denied that the deal includes the backstop, which indicates the Northern
Ireland staying aligned as well as some rules from the European Union single market. After the
end of the transaction period, the entire process has been driven the business rules of both the
countries.
As a result, the goods and services which come from the side of the Northern Ireland and
rest of the goods are sent to the UK market, are being checked for understanding if the goods are
being able to satisfy the essentiality and the standard of EU market.
In order to involve in the in the effective manner, it is very important for maintaining the
good attachment with the EU and UK customers union.
However, it cannot be denied that it is harder for UK to leave the backstop unilaterally as
EU may need to approve the backstop ending.
This is also very important for UK to follow the European Union rules for the particular
time as in case of implementing the Withdrawal agreement in the effective manner in the
parliament, the the Backstop can create challenges for UK to leaving the European nation. The
EU leaders have refused for reopening the negotiation process on the Irish backstop. It has been
mentioned in the UK Brexit deal that by continuing the Backstop, it can make difficult situation
for the UK.
2/ possible options the UK faces:
In the option range, it has been mentioned that none of the Brexit deal can be the second
referendum, which can result the UK for staying in the bloc.

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After understanding the resounding defeat of the deal of the prime minister, the prime minister
can be left from her position and an alternative for the little time can be appointed in case of
handling the Britain’s scheduled exit. Large number of the Brexiters are preferring to leave the
EU without making any kind of deal because as per the deal, the negotiation of May can keep
UK close to the bloc, which can backstop for entering the force. It has been identified that most
of the cases, the large numbers of Remainers dream for the second referendum, which can
reserve the original decision of the 2016 for leaving the bloc.

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In the below table, the five key points depending on the Brexit Spectrum has been dicusssed. It is
being considered as the simple way for understanding the ‘options as well as the properties of the
table.

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Future effect of the Brexit date
There are few month left for scheduling the Brexit, however, it is true that there are some effect
of the decision which has been shown.
1. The overall Economy :
In the British bank, the trade investments has been slowed down. It has been identified that most
of the organizations are denying to flash the cash. As its impact, the by calculating the total level
of GDP, the bank can be able to lower the loan rate 1.2% within the coming three years.
2.Unemployment: