On the 23rd of June 2016, The entire history of the United Kingdom 's relationship with the European Union was considerably changed when the majority of the population voted for "Brexit". The term Brexit can commonly be defined as UK 's exit from the European Union. The actions of Brexit have greatly altered political and financial impacts on not just the UK, but in other countries as well. This essay will be discussing the effect of Britain’s departure from the EU and how this will have an impact on businesses
One aspect of Brexit that most business owners and even the public will agree on is the clear level of uncertainty for the next couple of years that businesses will encounter. Andrew Sentance from the Telegraph states that 70-80% …show more content…
This process solely depends on “Article 50” which can be defined as “an agreement signed by the heads of state and governments of countries that are a part of the EU” (Ollerenshaw,2016). An important issue that most businesses are concerned with is trades. The EU is one of the UK’s most vital trading partner as in 2015 it was responsible for 44% of UK goods and services exports furthermore the UK even has a deficit of £69 billion and a surplus of £30 billion with non-EU countries. The future of trade with the EU will directly be dependent on new negotiating terms with the EU as they will have to be members of either the World Trade Organization or the European Economic Area. The main complication for a majority of businesses is the employment matter. Since a majority of the UK employment law is based on the EU nevertheless due to Brexit the UK is most likely to fall into a recession which may lead to a rise in the unemployment by 6.5% and a loss of 500,000 jobs …show more content…
Regarding Brexit, this opens the way for more members of the EU more willing to leave especially Scotland. Considering all this, Immigration policies will certainly change over the following years and businesses will greatly be affected by this. For the long term, it is still unclear how businesses will manage these immigration policies, especially with them knowing their recruitment costs will certainly rise when the UK’s withdrawal negotiations come to an agreement. This agreement could mean the legal status of EU expats could certainly change when these negotiations are finalised, but in the meantime, it is still debatable. Whilst there is an abundance of negative aspects of Brexit, there are however a few positive features. One of the few positives is that Britain is now able to establish itself as a positive nation, and can even exclusively enjoy better trade deals with countries such as China and India due to it now operating as a single market (Giles,2016). Perhaps UK’s most valued relationship is with the US and how this will now be defined is that a new agreement will have to be taken upon as previous arrangements have now become futile
One aspect of Brexit that most business owners and even the public will agree on is the clear level of uncertainty for the next couple of years that businesses will encounter. Andrew Sentance from the Telegraph states that 70-80% …show more content…
This process solely depends on “Article 50” which can be defined as “an agreement signed by the heads of state and governments of countries that are a part of the EU” (Ollerenshaw,2016). An important issue that most businesses are concerned with is trades. The EU is one of the UK’s most vital trading partner as in 2015 it was responsible for 44% of UK goods and services exports furthermore the UK even has a deficit of £69 billion and a surplus of £30 billion with non-EU countries. The future of trade with the EU will directly be dependent on new negotiating terms with the EU as they will have to be members of either the World Trade Organization or the European Economic Area. The main complication for a majority of businesses is the employment matter. Since a majority of the UK employment law is based on the EU nevertheless due to Brexit the UK is most likely to fall into a recession which may lead to a rise in the unemployment by 6.5% and a loss of 500,000 jobs …show more content…
Regarding Brexit, this opens the way for more members of the EU more willing to leave especially Scotland. Considering all this, Immigration policies will certainly change over the following years and businesses will greatly be affected by this. For the long term, it is still unclear how businesses will manage these immigration policies, especially with them knowing their recruitment costs will certainly rise when the UK’s withdrawal negotiations come to an agreement. This agreement could mean the legal status of EU expats could certainly change when these negotiations are finalised, but in the meantime, it is still debatable. Whilst there is an abundance of negative aspects of Brexit, there are however a few positive features. One of the few positives is that Britain is now able to establish itself as a positive nation, and can even exclusively enjoy better trade deals with countries such as China and India due to it now operating as a single market (Giles,2016). Perhaps UK’s most valued relationship is with the US and how this will now be defined is that a new agreement will have to be taken upon as previous arrangements have now become futile