This project aims to encourage application of study skills to search for information on the topic “Critically analyse the potential impact of Brexit on business” then summarise the same to create a meaningful report.
1. Conducting initial research on the potential impact of Brexit on business and forming a suitable introduction.
2. Presenting finding and encouraging a discussion on the subject in detail.
3. Forming a conclusion and adding personal opinion as well
4. Compiling a list of references using Harvard referencing style.
In historic referendum on June 23rd, 2016, Britain voted to leave the European Union. After this, the pound (£) fell to its lowest since 1985, immediately after the result was declared. UK is considered as one of the best countries to start a business, but that could change to the unknown affects Brexit could bring. After Brexit in UK, it has been made great impact on its multiple factors positively and negatively in both aspects. In addition to this, the report will be discussed in the major affects of Brexit on several business sector in UK. The investigation will also be discussed about possible reduction of foreign investment in the nation and also it makes impact on the free to make trade agreements to business deals with countries around the world.
It can be said that, various aspects can be seen in UK and EU, which has been made great impact on business environment of both countries (Bratton and Gold, 2017). Different-different peoples has given several statements on impact of Brexit on business'. The founder of Dyson, the British company that makes high end vacuum cleaners and other household items. The company has reported that the sharp increasing rate in the profitability of company in industry. Because of the falling of the pound, the company has been exporting its products and services in foreign market at cheaper rate. So it makes negative impact on profitability of business. As per the company owner has said, international sales are raising up for smaller companies. As per the influences of Brexit the luxury car service provider are looking forwards to cheaper to foreign buyer. The auto-mobile sector also being affected from Brexit in the UK, Nissan a Japanese auto-maker that is one of Britain's largest overseas employee, has said that, they will be increasing in car production volume in Britain in case of protecting itself form negative impact of Brexit in UK. As per the statistics, in 2015 The UK has exported 133 billion Euros of goods to the rest of the EU (McCullagh, 2017). It can be said that, the UK is experiencing losses of billion after implementing of referendum in the nation. The annual immigration of the European Union has more than double since 2012,.immigration from the EU is boosting up the current workforce of the company year by year. The most likely affect has been seen that, one nation's lower skilled employees are entering into other country's employment and making impact on the higher skilled employees in the country. It is being cause for low-wages sector heavily dependent on migrant of high skilled labour. It has been seen that, multiple numbers of employees has been stopped to immigrate from UK to EU after Brexit.
Apart from it, the official statistics shows that the EU is the destination for about half of all British good exports, so it can be said that, Brexit has generated advantages for both sides in continuing a close commercial arrangement in case of gaining proper profitability in the market. In addition to this, in the European Union has been reached to the highest benefits of manufacturing costing of various industries in the nation. In case of its effect on it, both countries are increasing more dependent on whether the united kingdom agrees a trading agreement with the European Union and the nature of any such agreement (Ford, 2016). After Brexit policies implication on both countries, it has been seen that, the trading policies concerning about to changing in its various business industries in the nation like BBC. Hence, it could be said that, Brexit has been made great impact on productivity and profitability of various businesses.
From the above analysis, it can be concluded that, Brexit has been made great impact on the profitability and productivity of the business section in UK and EU both countries. The report also concludes that, mots of manufacturing and import and export policies of both counties. Brexit is only likely to have a limited impact on Britain's productivity. The major improvement has been seen in the case of business investment which shows little connection with political developments. Foreign investment is raising up in both nations after applying the direct investment in Britain votes to leave the European Union. In addition to this, this investigation also concludes about after decision of UK to leaving EU, the British government has saved 10 billion per year on investment on its contribution to the European unoun's.