Impact of Brexit on UK Business

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Introduction

Brexit is a process and a short form which is known as the British exit from the European Union (EU) that started in the year 2016 when it has been voted by United Kingdom in order to leave EU (Cumming & Zahra, 2016). The unified monetary body belonging benefits were no longer outweighed the free movement immigration cost which has been decided by the residents. The votes in favour of leaving EU was 17.4 million whereas votes for remaining in EU were approximately 15.1 million. In the consequence of voting and deciding, it will be confirmed by Brexit to have withdrawal agreement as an act which received royal assent. This will implement the agreement of withdrawal as a legislation which is negotiated by EU and UK (Belke & Ptok, 2018). Below are the objectives which will be the main focus of this research. 

  • To identify Brexit disruptive effects and the responses of numerous business organisations.
  • To identify the structure of business organisations in UK by the impact of Brexit.
  • To identify the potential impacts and nature of concerns of SMEs because of Brexit impact in UK.

It is highly significant to explore and analyse the effect of Brexit which has deep impact on British business organisations. The main findings of this research are that the business organisations which are operating in UK have disruptive responses and effects because of Brexit and also have stronger consequence on UK firms. It has also been identified that Brexit will also impact the decisions of relocation, investments in UK and the organisational structure. However, the disruptive effect has numerous consequences for designing, adopting and defining the structure of organisation. Brexit is seen as an obstacle to the success of the business and have potential impacts of SMEs that has impact in UK because of Brexit. 

This research report further presents the literature review in which the information outlining and defining the research objectives will be included. The next part relates to the research methodology which will define which methodology is being used in order to meet the described research objectives and what resources are used for collecting or analysing the information and data. The next part relates to the discussion and results of the research using information, graphs and diagrams. Moreover, next part is about conclusion and the last part relates to recommendations. 

Literature Review

United Kingdom joined the commission of European Union in the year 1973, authorising affiliation with a referendum in the year 1975. Approximately 52% of participating electorate of UK voted in order to leave EU in the year 2016, a decision approved by the government of UK in the year 2017, that has invoked the Article 50 on European Union Treaty to withdraw from European Union which is a decision that is that is commonly referred as Brexit. Presently, Brexit has been scheduled in order to take place in the initial year of 2019 and will mean the withdrawal of UK from the supranational institution of politics and its myriad constituent agreements (Brown, et al., 2019). 

According to Zaidi, et al. (2017), Brexit will have a profoundly huge impact on British firms working in Europe, and especially worldwide firms whose exercises range the UK and central Europe. It is rooted in surviving exploration that authoritative structures of business organisation and systems reflect their more extensive institutional condition. For instance, earlier work has credited to institutional conditions the rise of business gatherings, disguise of exchanges, and the choice to enter nations through joint activities.

While an agreement which is soft that matches the understandings that oversee the relationship of EU with Switzerland and Norway would at present be effective for business organisations, "harder" Brexit choices are relied upon to have more grounded consequences for British firms and European firms working in the UK. For instance, under the purported Turkey model, the UK would not be a piece of the EEA or the European Free Trade Association yet would take part in a traditions association with the EU, where there would be no duties or quantities on mechanical merchandise sent out to EU nations—yet British firms would need to conform to the regular outside taxes of EU on products imported from non-EU nations (Moschieri & Blake, 2019). A further choice—the Canada model—alludes to a CETA-type facilitated commerce manage the EU, with practically no charges on merchandise (aside from some nourishment things and administrations). However, this model accompanies several administrative limitations and exacting standards of source. For instance, exporters would need to agree to EU measures of the product and specialised necessities. This model conceivably puts UK-based exporters off guard as for rivals in nations that have finished up exchange agreements with the EU (Orazulike, 2018).

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