GROUP 3 TOPIC: BREXIT AND BUSINESS EFFECTS BACORE 6

Summary

This presentation explores the impact of Brexit on businesses, particularly focusing on trade barriers, currency fluctuations, administrative costs, and talent mobility. It explains the timeline of Brexit, from the UK's 2016 referendum to the end of the transition period in 2020. The script highlights the effects on different sectors like manufacturing, financial services, and agriculture. It also delves into the European Union's economic and political losses, as well as the consequences for global trade agreements. The presentation concludes with a reflection on how businesses must navigate these challenges post-Brexit.

Takeaways

• 😀 Brexit refers to the UK's decision to leave the European Union, combining 'Britain' and 'exit'.
• 😀 The Brexit process started with a referendum vote on June 23, 2016, and officially began with Article 50 in March 2017.
• 😀 Key events in Brexit included the transition agreement in March 2018, the draft withdrawal agreement in November 2018, and the end of the transition period on December 31, 2020.
• 😀 Brexit has significantly impacted businesses, causing changes in trade barriers, currency fluctuations, administrative costs, and market access.
• 😀 Businesses dealing with the EU face challenges such as new tariffs, customs procedures, and instability in currency markets.
• 😀 Talent mobility has been affected by Brexit, leading to potential workforce shortages in sectors like healthcare and technology.
• 😀 The uncertainty created by Brexit has caused a decline in investments, both foreign and domestic.
• 😀 Different business sectors face unique challenges: manufacturing struggles with tariffs, financial services face restrictions, and agriculture may suffer due to changes in trade agreements.
• 😀 The EU has experienced economic losses due to the UK's departure, impacting trade, investment, and political balance.
• 😀 Brexit has also disrupted social and cultural elements like labor mobility, education, and research collaboration between the UK and EU.
• 😀 Free Trade Agreements (FTAs) can lead to economic growth, lower government spending, and facilitate technology transfer, but they also pose risks like job outsourcing, poor working conditions, and environmental degradation.

Q & A

What is Brexit, and how did it come about?

Brexit is a combination of the words 'Britain' and 'exit' and refers to the withdrawal of the United Kingdom from the European Union. It was initiated after the UK held a referendum on June 23, 2016, where the majority voted to leave the EU.

What were the key events in the Brexit timeline?

Key events include the UK's vote to exit the EU on June 23, 2016, the triggering of Article 50 on March 29, 2017, negotiations starting in June 2017, the agreement on a transition phase in March 2018, the draft withdrawal agreement in November 2018, and the end of the transition period on December 31, 2020.

How does Brexit affect businesses in the UK?

Brexit impacts businesses by introducing trade barriers, currency fluctuations, increased administrative costs, potential talent shortages, and uncertainty about market access, particularly for companies that rely heavily on trade with the EU.

What specific business sectors are most affected by Brexit?

The sectors most affected include manufacturing, which faces new tariffs and customs procedures; financial services, which may struggle with market access within the EU; and agriculture, which may face changes in subsidies and trade agreements.

What economic loss does the EU face due to Brexit?

The EU loses significant economic contributions from the UK, which made up 13% of the EU's total population and 15% of its GDP. This departure also reduces the EU's budget by 12%.

What are the political consequences of Brexit for the EU?

Brexit alters the political balance within the EU, leading to a shift in power dynamics and potentially affecting the EU's global standing. The loss of the UK as a member state also impacts the EU's decision-making processes.

What social and cultural disruptions are caused by Brexit?

Brexit leads to disruptions in labor mobility, education, and research collaboration between the UK and the EU. The free movement of people and the ability to work or study across borders are particularly affected.

How does Brexit tie into global economic integration?

Brexit is a significant event in the context of global economic integration, highlighting the challenges of economic globalization. It underscores the interconnectedness of trade, investment, and policy between nations.

What are the potential benefits of Free Trade Agreements (FTAs)?

FTAs can lead to increased economic growth by creating job opportunities, boosting trade, attracting foreign investment, lowering government spending through simplified regulations, and promoting technology transfer and knowledge sharing.

What are the negative aspects of Free Trade Agreements (FTAs)?

FTAs can result in job outsourcing, poor working conditions in low-cost labor markets, and environmental degradation as companies prioritize profit over sustainability and environmental protection.