Dissertation: Analyzing EU's Global Power in a Post-Brexit World

This dissertation investigates the evolving role of the European Union as a global power in the wake of Brexit. The research examines the shift in the EU's Common Foreign and Security Policy (CFSP) and its overall influence in the international market following the UK's departure. Through secondary research and thematic analysis, incorporating the views of numerous scholars, the study assesses the impact of Brexit on the EU's international relations and its ability to maintain its global standing. The introduction outlines the research aims, objectives, and questions, focusing on how Brexit may alter the EU's position and relationships with other nations. The literature review provides an overview of Brexit, the UK's role in EU policy-making, and the challenges the EU faces in maintaining international relations. Data analysis, using thematic analysis, explores the influence of the UK within the EU, the outcomes of Brexit, and the implications for the CFSP. The dissertation concludes with recommendations and a summary of findings, offering insights into the EU's future as a global power in an increasingly competitive international landscape. The study highlights how the loss of the UK impacts the EU's economic and political influence globally.

Running head: DISSERTATION
Shift EU’s Role as a Global Power in Future Market
Name of the Student
Name of the University
Author’s Note

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Acknowledgement
I would like to express my gratitude to my teacher (Name of the teacher) as well as our principal
(Name of the principal). They gave me the excellent opportunity for conducting this wonderful
project on the topic like EU’s Role as a Global Power in Future Market, which also helped me
in doing a lot of Research. I have gained knowledge and experience on so many new things I am
really thankful to them. In addition, I would also like to thank my parents and friends who helped
me a lot in finalizing this project within the limited time-frame.

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Abstract
The research focuses to identify the upcoming shift in EU CFSP policies and shift in EU’s global
power after actualisation of Brexit. Brexit is likely to change EU’s relation and influence in the
international market. An effective secondary research based on secondary analysis. Thematic
analysis has been conducted by involving the opinion of numerous eminent scholars. In order to
maintain international relation, EU has lost the power of supremacy in the global market. The
gradual rises of new power such as China, Japan, India, and Russia have predominantly have
given a competitive threat for EU in maintaining overall international relation. By making an
effective comparative analysis the study has evaluated the impact of Brexit on maintaining
international relationship with EU.

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Table of Content
Chapter 1: Introduction....................................................................................................................4
1.1 Introduction................................................................................................................................4
1.2 Problem Statement.....................................................................................................................5
1.3 Research Aim and objectives:...................................................................................................6
1.4 Research Question.....................................................................................................................6
1.5 Research hypothesis:.................................................................................................................7
Chapter 2 Literature Review............................................................................................................8
2.1 An overview about the incident of Brexit:................................................................................8
2.2 Role of UK in making EU policies:.........................................................................................10
2.3 Barriers faced by EU for making international relation:.........................................................12
2.4 EU as a global Power after the incident of Brexit:..................................................................14
2.5 Summary:.................................................................................................................................15
Chapter 3 Data Analysis: Thematic analysis.................................................................................16
3.1 Influence of UK in EU:............................................................................................................16
3.2 The outcome of Brexit:............................................................................................................20
3.3 Influences on CFSP:................................................................................................................22
3.4 The EU as a future global power:............................................................................................23
Chapter 4: Recommendation and Conclusion:..............................................................................25
4.1 Conclusion:..............................................................................................................................25
4.2 Recommendation:....................................................................................................................26

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Chapter 1: Introduction
1.1 Introduction
The research aims is to identify the possible changes in the EU and their position in the
international market due to the impact of Brexit. The answer sought in this research is to identify
EU’s power in global market after actualisation of Brexit as Britain was one of the significant
contributors in the union. Both economic and political turmoil in the international market is
anticipated. The possible situation of both Britain and EU in relation to the international market
is under constant debate. European Union had always been a major player in the international
politics and holds significant position in world diplomacy (Irwin 2018). The union contributes in
major sections of international relation such as promotion of human rights, trade, development
and humanitarian aid etc. The union further contributes in the development of international
businesses providing opportunity for the developing and underdeveloped countries to establish
trading with its member countries.
The Common Foreign and Security Policy is the policy formulated by EU to control their
external relation that includes trade and commerce with the other nations around the globe. This
policy further covers the security and development of the third world countries. In other words,
the purpose of this policy is to facilitate in strengthening EU’s external abilities for acting
through the development of civilian and military capabilities in case of conflict (europa.eu 2018).
Since Britain was one of the significant leaders in the Union and prioritised voice in the union,
this will considerably alter the international environment and further alter EU’s voice
internationally. Furthermore, Britain was one of the major destinations for the third world

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countries for exporting goods. Escape from EU will likely to change trading policies, which has
direct impact on the developing countries.
Moreover, banking industry is enormously established in UK. The policies between EU
and Britain are on a transitional phase and new policies will be implemented after the
actualisation of Brexit in 2019. Hence, power of EU is likely to be altered due to this. This
following research will identify and analyse the assumable role of EU in globally and its shift in
position and relation with the countries. This particular study has provided to give an in-depth
overview about the necessary impact of Brexit and the changes occurred on the system of EU
( Holden 2016). It is undeniable that EU had to face immense challenges in maintaining their
image and reputation after the separation of UK from EU. They had to face difficulties in
maintaining global power and international relation due to the lack of sufficient resources. UK
has faced immense challenges in maintaining their financial flow, GDP.
1.2 Problem Statement
Focus of the research is to identify the upcoming shift in EU CFSP policies and shift in
EU’s global power after actualisation of Brexit. Britain was the second highest contributor for
EU in GDP. The separation between EU and UK left a major impact on the European business
industry. The organizations had to face immense economic barrier in running their entire process
of business effectively. People from various geographical boundaries and attitudes had to face
immense challenges in maintaining their employability after the incident of Brexit. Most of the
multinational companies such as TESCO, ASDA has faced immense employee turnover at that
time. EU after being separated from UK failed to maintain their image and reputation in the
realm of international trade market. Due to the lack of sufficient financial resources, EU was
unable to maintain international relation (Biscop 2016). On the other hand, business

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organizations before entering in the market of Europe for expanding their business process had to
face immense difficulties in establishing business.
The entire business market of UK has faced disastrous consequence after the incident of
Brexit. It was primarily expected that community would grow faster and become more
competitive due to the segregation of market. However, it is finally observed that the process of
industry development was highly decreased in order to avoid complicated taxation policies and
tariff (Chaban et al. 2013). The organizations have to bear extreme level of tax in order to follow
the regulations of both UK and EU. Large numbers of practitioners have opined that after the
separation of UK and EU the employee turnover rate is highly increased. TESCO, the super
market giant has saved their drives by cutting 1200 head office jobs due to Brexit
(theguardian.com 2018). Employees are in search of better opportunity and scope. As a result,
they become flexible to leave the organization after getting better opportunity.
1.3 Research Aim and objectives:
Aim of the research is to identify the changes in European Union’s relation
internationally and shift in its influence in the future time. The primary objectives of this
research are as follows:
1. To identify the change in EU’s global power in future
2. To identify the impact of Brexit on EU in building image internationally
3. To what extent can EU maintain their position as global power
1.4 Research Question
 Will EU be able to hold their position as a global power after the Brexit?
 What are the possible modifications in EU’s relation with currently associated countries?

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 What are the changes likely to occur in EU’s CFSP?
1.5 Research hypothesis:
H0: UK does not leave major impact on EU to maintain its global power
H1: UK leaves major impact on EU to maintain its global power

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Chapter 2 Literature Review
2.1 An overview about the incident of Brexit:
In June 2016, more than 50% of the participating electorate of UK decided to leave
European Union to avoid free trade policy. In 2016, the number of electorate reached around
72% (telegraph.co.uk 2018). Behind forming EU there was specific missions. The primary
objectives of European Union are as follows with which British and other European countries
were also involved.
 To promote peace and well-being of the citizens of Europe
 To render sustainable development along with balancing economic growth and social justice
 To make every country equally strong in economy as well as in their social progress
 To run an integrated market based on which the developed countries would help the
developing one (Zwolski 2012)
Hoornweg and Bhada-Tata (2012) stated that UK is one of the most prominent and active
members of EU, which is, recognize as the second contributor of after Germany in EU’s GDP.
The inhabitants of British seemed harm to their nation due to this emergence of liberalization and
rapid immigration. On the other hand, it is observed that UK foreign-born population doubled
from 1993 to 2014.

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Figure 1: UK Foreign-born Population raised
(Source: Zwolski 2012)
As a result, the entire business market of Europe is facing immense challenges in
maintaining the job security of their inhabitants. On the other hand, equalization and
liberalization in trade and economic policy has become harmful for the further development of
Britain. Van Schaik and Schunz (2012) opined that large number of immigrants from other
continents already occupied a dominant place in the soil of Britain for securing their future. In
addition, UK had to take a major part in reducing the gap between “have’s and haves not” after
forming the regulations made by EU. Consequently, the inhabitants of British decided to leave
EU for securing their place from liberalization.
As mentioned already, UK is one of the most significant countries of Europe for
expanding their trades all over the World. UK advertising expenditure was estimated at 21.19
billion British pounds in 2016 according to the AA/WARC Expenditure Report. As a result, EU

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undoubtedly received immense support from UK in terms of gathering resources such as
economy, human as well as physical. After the departure of UK, EU had to face major
challenges in maintaining effective international relation. Lavenex (2014) other countries as well
which were dependent on UK had to face difficulties in running their entire process of business
effectively. For example China had to face immense challenges in maintaining their export
system effectively. The scope of maintaining global trade has become decreased after this
departure incident. The organizations belonging to Europe were facing challenges in maintaining
quality of products as well as services. The job opportunities became very much restricted due to
the incident of Brexit. UK employment falls since aftermath of Brexit Vote. Unemployed
number of people in UK dropped from 59,000 to 1.425 million (theguardian.com 2018).
2.2 Role of UK in making EU policies:
Numerous scholars have provided their own opinion regarding the role of UK on EU. As
emphasized by Kaiser et al. (2012) around 170 of multi-national employers are there in UK.
Therefore EU is receiving large amount of GDP from Britain which ultimately strengthened their
economic Status. After Germany, UK is providing 17% of GDP every year.. At the same time,
rendering business development and social justice was possible only when EU had enough
economic strength for improving society. The primary roles that UK plays in EU policy making
are as follows:
 Policy maker:
Dauvergne and BL Farias (2012) opined that UK was the member of European Aviation
Safety Agency (EASA). As a result, while making any global policies UK took a significant role.
In order to develop the trade policies and expand wings in international market EU was

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dependent on policy making of UK. In addition, UK is entitled to appoint new commissioner
until the decision of Brexit is made. In addition, due to the emergence of developed business
industries UK has appointed ample employees as associate. Large number of organizations from
other developing countries has established their entire business wings in the soil of Europe. As a
result, the country is getting economically strong. Locke (2013) opined that incident of Brexit
made a major prevention to other countries for their new market entry.
 Policy arbiter:
Norway being one of the largest trading partners, has opposed some of the regulations
implemented by EU. At that very specific time, a huge altercation occurred between Norway
government and EU. Biscop (2016) stated that UK took major part in resolving the issues and
infrequence Norway for following regulations and acts of EU for maintaining country harmony.
However, it is undeniable that EU by using the resources of UK was able to maintain effective
international relation.
 SWISS Model:
As per the opinion of Fioramonti (2012), Switzerland also left EU in quest of rendering
free trade market. Based on the agreement between Switzerland and EU, the arrangement
excludes certain service sectors such as financial services, banking as well corporate sector.
After UK economy is dominated by these sectors, the inability to access the free market could be
effective and damaging. Although UK would be in a state of negotiating its own deals with EU,
there would not be any evidence that EU would grant access. For example, in spite of fervent
request, Switzerland has still not been granted for accessing to EU’s financial pass porting
service, instead of being forced to open EU- based subsidiaries. EU has received immense