When the Single Market was created by the European Union in 1993, the United Kingdom, alongside its fellow member countries, were introduced to the four freedoms. These four freedoms are the movement of goods, services, people and capital without restriction between those countries who are members of the European union. However, with the result of the European referendum in the UK meaning we will in the near future be leaving the European Union, companies within the UK must now look at what this means for their business, not just financially, but also politically and socially. Strategic planning such as globalisation and industrialisation may be affected and the means by which a company trades and manufactures its goods could also change dramatically. …show more content…
The European Union is not the only organisation committed to free trade, with the UK already a member of The World Trade Organisation since its introduction in 1995. There are 164 member countries (WTO, 2016), compared to the European Union’s 28 members, meaning although the companies no longer have as stable a free trade with EU countries, there are still guidelines put in place by the WTO that these companies can benefit from. In fact, statistics from the Brexit economists show that free trade under WTO rules could lower consumer prices by an average of 8% (Financial Times, 2016.) Lower prices could mean more products being purchased, which is great for any companies five year strategical plan, as more business means more money. There are also other ways of selling their goods internationally. The internet is a huge commodity today, and companies all around the world are using it to sell into new markets, taking advantage also of its low costs (Baines, 2011.) Therefore, although a UK company such as Diageo may struggle to begin with post Brexit, the European Union is not the only option out there for the free movement of goods. Strategically, the company will need to make sure it assesses the economic impact …show more content…
In today’s economic society, it is all about transferring from an agricultural to industrial country. Developing countries such as India, where 60% of the population is agricultural (Morrison, 2011), are desperate to drum up the trade to become more industrialised. This is great for a UK company post BREXIT as it allows them to barter trade deals beneficial to them out with the EU in countries such as the BRICS. In 2012, Chinese company Huawei invested $2 billion in the UK, taking advantage of its ICT and world class research capability (Ernst and Young, 2013.) Therefore, in a UK companies five year plan post BREXIT, although free trade of goods is useful through the EU and stops domestically sourcing goods which can be a lot more expensive, the chance of international trade deals is not going to cease as there are many developing trade countries who will be willing to buy and sell goods in order to advance in the current trade market
Tesco is a UK based Supermarket Company which was founded in 1919 by Jack Cohen, since then it has grown to become a multinational company which specialises in a lot more than just groceries, this has improved the overall profit of the company. The overall employees recorded at the end of 2015 was 476,000+, this shows that is a source of employment for nearly half a million people in the UK. The supermarkets are no longer just in the UK they also have shops based in Malaysia, India and Poland, this presents that they are increasing the size of business to a multinational company and is also a good source of jobs for people in poorer countries. In the world over 75million people travels
The United Kingdom, in the next year the people will get a chance to choose their countries’ fate in whether the United Kingdom should leave the European Union. What makes this important is that it would be the first country to leave the European Union in a time when other European countries are either in negotiation or planning to join so it would be a big deal as the United Kingdom is Europe’s third largest economy. As the people are about to vote on their future, there are concern as what would be the economical, social, and political consequences while for some what would be the benefit if the United Kingdom leave. Today In the next paragraphs I would explore the United Kingdom in the European Union and the Political economical and social
... E., (2005) Should Britain leave the EU?: an economic analysis of a troubled relationship. 1st ed. Cheltenham: Edward Elgar Publishing Limited
...with the dollar. He also points out that joining the Euro will boost up the inflation rates within the country, as the European inflation rates are currently higher than those of Britain. As for jobs, Browne believes that joining the Euro would destroy British jobs and would repel foreign investors, as it would be a profound shock to the economy and decrease Britain’s effectiveness in the business world. It would no longer be the country that has both - access to the European market and a separate secure currency closely tied with the dollar. The government of Tony Blair has heard many forecasts that multinational corporations will seek business elsewhere if Britain does join the Euro. Even the simple costs of retraining personnel, buying new machines and accounting systems would impose a burden on small businesses in the UK when changing the national currency.
As Ian Fletcher pointed out in Free Trade Doesn’t Work: What Should Replace it And Why, nations need a well-chosen balance between openness and closure toward the larger world economy (Fletc...
Beginning with the birth of the twentieth century, the United States was in a dilemma. America needed amelioration; the country had a tremendous amount of potential but was unable to put forth the necessary actions without the correct guidance. It was vital that the United States was pointed in the right direction or more problems would occur. America required political reform and the elimination of corruption caused by the government, thus, the time prevailed for the Progressive Presidents.
Springford, John, Tilford, Simon. The Great British Trade-off The Impact of Leaving the EU on the UK’s Trade and Investment. Centre for European Reform. Web. 10 May 2014. .
In a world of free trade, growing competition and accessibility to foreign markets, the need for methodical market analysis and assumptions is steadily rising in today’s business environment. It is just a normal way of thinking to primarily intent to eliminate the financial before entering a new and foreign market. This suggests that enterprises have to develop an overall strategy for their business in order to gain competitive advantage and consequently market share. With the words of Michael E. Porter, professor at Harvard University and leading authority on competitive strategy, this desirable market success is indirectly linked to the individual structure of a market. The unique structure of a single market influences the strategic behaviour and the development of a competitive strategy within a firm. The competitive strategy finally decides whether a company performs successfully on the market or not. Referring to this interpretation of business success, M. E. Porter established his five forces framework that enables directives to gather useful information about the business environment and the competitive forces in industries.
First, the structure of the framework strongly supports an extensive analysis of the directive and of the context in which it was formulated and implemented. Second, each element is important when trying to clarify how a policy is created in the European Union and the impact of the policy on businesses. The 'issue' element provides an opportunity to explain the content of the directive. The 'actors', 'interests','arenas' and 'assets' elements describe and illustrate the power play involved in European Union policy formulation and implementation and the place occupied by businesses. The 'information' element demonstrates the ever increasing importance that knowledge has within the European Union and how it can be used by businesses. Finally, the design of a non-market strategy supported by the (IA)3 framework enables a firm to become active and not only adapt to a certain policy but also gain an opportunity to influence the environment within which it is
A market economy is a society that is industrialized. For example, there are factories and workers that make goods. But a society does not need capitalism to be industrialized. A market economy is where there are people who compete. They try to get money by themselves and only for them. They are money greedy and the want it all. This is a goal and this is what a market economy focuses on. But even though society is industrialized, they have limits. They are controlled by the government. For example, Social Security is controlled by the government. When the government controls, institutions do not have many rights. For social security, there are qualifications and these qualifications are made by the government. But the poor face more problems than the rich. For example, the rich have more power and control the ways there
Functionalism: The discord that interest in one reach, (for instance, trade) pushes coordinated effort in distinctive extents. In principle, the pills issue, movement issues, et cetera are all tended to fortnightly
Firstly, what should be noted here is that international trade has been providing different benefits for firms as they may expand in different new markets and raise productivity by adopting different approaches. Given that nowadays marketplace is more dynamic and characterized by an interdependent economy, the volume of international trade has grown substantially in recent years, reducing the barriers to international trade. However, after experiencing the economic crisis that took its toll in 2008 many countries adopted a different approach in terms of trade barriers by introducing higher tariffs in order to protect domestic firms from foreign competition (Hill). Secondly, in order to better understand the implications of the political arguments for trade it is essential to highlight the main instruments of trade policy (See appendix 1).
Various studies have scrutinised the overall impact of Brexit including the implications for jobs prospect, the effects on the public finances , its influence on the UK and also the possible risk it imposes on global economy. In conjunction with that, a plethora of analyses have also been attempted to quantify the economic impact Brexit primarily have on the UK , its region and also the rest the world. UK’s departure from the European Union , informally known as Brexit , bears an unswerving capacity to cut across the broad prism of economic constructs in both regional and global levels despite the wider claims that mentioned it is a risky step toward regional destabilization as EU loses its second largest
... most likely will not change much because countries are content with the way the current trade policies work and with the current global economy in question, many countries will be afraid to try to make a change. Perhaps, when the global economy is more stable, some countries may be brave enough to go against the status quo and try to change how they do business.
The United Kingdom was a member of the European Union. The European Union is an example of the second most integrated arrangement, the economic union. Therefore, voting to leave is a direct effort to reverse regional economic integration.