A Report: Analysis of Potential Impact of Brexit on UK Business

This report analyzes the multifaceted impacts of Brexit on UK businesses, examining both the positive and negative consequences across various sectors. The study explores the effects on exporting and importing operations, highlighting the challenges of new tax implementations and the potential for increased trade value as the UK establishes independent global trade relationships. It also investigates the impact on tourism, considering the effects of fluctuating currency values and evolving consumer behaviors. Furthermore, the report assesses the implications of Brexit on immigration, discussing the decline in emigrant numbers and the subsequent impact on the workforce and the economy. The conclusion summarizes that Brexit presents both opportunities and challenges for UK businesses, with effective strategies being crucial for sustainable growth. The report uses secondary sources like journals, books and online articles to support its arguments.

ANALYSIS OF POTENTIAL IMPACT
OF BREXIT ON BUSINESS

Table of Contents
INTRODUCTION...........................................................................................................................1
DISCUSSIONS/FINDINGS............................................................................................................1
CONCLUSION................................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
The withdrawal of United Kingdom from Europe that is Brexit has put major influence
on the business (Cumming and Zahra, 2016). Any type of organisation either small or medium
variations are measured in the functioning of them. According to the data, there are around 60
industries of Britain left the EU leaving behind major impacts on antithetic factors such as
economic conditions, employment, social growth, etc. The present undertaking will cover the
impact of Brexit on the businesses. This research will further shed lights on how good or bad
Brexit is for importing and exporting operations, tourists and immigrants.
DISCUSSIONS/FINDINGS
Brexit has come along with various advantages and disadvantages on the different factors
such as imports, exports, tourism and emigrants. In context to the exporting and importing that is
basic trading functions it has been observed that it will take minimum 2 years for the nation to
completely settle down individually (Dhingra and et. al., 2016). It has been observed that the
major impact has been put over the common market is due to the implementation of tax on the
trading operations. However, it should be recognised that the legislation framed in the UK on the
tax and revenue are better than that of the EU. It has been observed while comparing the
structure settled by both the administrative bodies. EU markets are paying more tax as compared
to the UK businesses. In addition to this, export from the UK industries has been raised after they
exit from EU. The legislation in European Union restricts the operations and the revised laws of
UK has lenient structure to boost up the trade. Initially, when the nation was working as a part of
EU, the global level reach was available to various companies of different countries. However,
after leaving the nation can now involve various establishments in the global exporting. This, in
turn, will raise the trade value. Ziv and et. al. (2017), supported the statement that leaving EU is
beneficial for exports of UK by stating that the market of the country raised by 2% after Brexit.
Masouros and Papadopoulos, (2016) contradicted the views by stating that the overall
impact of Brexit on the trade operations are negative. EU plays a major role in contributing to
GDP of nation. There are numerous small medium enterprise that runs as per the EU laws and
accounts in economy of the nation. However, now they have to implement all the new laws in
their business practices. In addition to this, variations in the trade policies impacted on the
business value of major industries operating in UK. It has been further recorded that overall a
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sum of $22.7 billion was risked by Britain after leaving EU. The new formulation of business
strategies, compliance with newly framed legislation had influence the operations of companies
harming the economy of the UK. According to the records, it has been found that the decline in
the different sectors accounts to total of $16.6 billion. Further, the UK manufacturing output and
exports up as pound are failing . The decreased value of the pound is mainly due to the raised
manufacturing output of British industries.
On the other hand, McGrattan and Waddle, (2017) explained that in context to the
importing of goods and products within the boundaries is secured till now. As per the discussions
made over the issues that can harm the businesses of both the countries after implementing new
legislations, the procedure has been stopped for 2 years. This decision is highly beneficial for
the UK as more than half of the products are imported from EU. This stay time will assist the
country in developing effective strategies till next year that will benefit the local and
international business of it.
According to the views of Dearden, (2017), economy of UK is much reliant on the travels
and tourism organisations. These companies render a major contribution in the GDP of nation.
There are around 3 million people who are engaged in the tourism business. After Brexit the
tourism will the factor which will be highly affected. UK being a comparatively cheaper
destination to visit, the value will decrease after leaving EU. In contrary to this, () explained that
internal tourists are now more interested in listing UK. The decreased pricing structure of
holiday packages is influencing a large number of consumers to visit the country. Earlier 12
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Illustration 1: Estimated declination in exports after Brexit.
Source: (Masouros and Papadopoulos, 2016)

months, the high value of pound were impacting on their buying behaviour however after Brexit
the tourists are increased in UK. In context to the immigration, it has been found that the earlier
Brexit there were 248,000 however it results in falling of 84,000 after exit from EU. This
retardation in number of emigrants will harm the economy of country based on immigration. The
major reason behind this is the depreciation in the value of pounds that is causing people to leave
UK. This has further impacted on the large share of jobs held by the emigrants. This work is
rendering a major portion to GDP of UK which will get affected after this leaving. However, ()
stated that this vacancies on the post will render the regional UK people to get an opportunity to
be employees (Dhingra and et. al., 2016). In this way, the employment, economy, social growth
and living standard of people will rise.
CONCLUSION
From the present undertaking it can be concluded that Brexit has left many positive and
negative influence on the different business sector of UK. The negative issues observed in the
present research includes that the compliance with the new policies are harming so many
industries. In addition to this, the value of pound is getting down leaving behind major impacts
on the businesses operating on the nation. on the other hand, it has been found that after Brexit
UK people are having more companies with international roots. The export of company has been
raised after this. Lastly, it can be concluded that by making use of the effective strategies, UK
can grow in an impelling manner.
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REFERENCES
Books and Journals
Cumming, D. J. and Zahra, S. A., 2016. International Business and Entrepreneurship
Implications of Brexit. British Journal of Management. 27(4). pp.687-692.
Dhingra, S., and et. al., 2016. The impact of Brexit on foreign investment in the UK. BREXIT
2016. pp.24.
Masouros, P. and Papadopoulos, T., 2016. The Impact of Brexit on UK Company
Law. European Company Law. 13(6). pp.208-209.
McGrattan, E. R. and Waddle, A., 2017. The Impact of Brexit on Foreign Investment and
Production (No. w23217). National Bureau of Economic Research.
Ziv, G., and et. al. 2017. The potential impact of Brexit on the energy, water and food nexus in
the UK: A fuzzy cognitive mapping approach. Applied Energy.
Online
Dearden L., 2017. I don't recognise my country anymore': British citizens leaving UK because of
Brexit amid exodus of Europeans. [Online]. Available through:
<http://www.independent.co.uk/news/uk/home-news/brexit-british-citizens-leaving-
migration-impact-irish-passports-latest-eu-referendum-fears-racism-a7914606.html>
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