This paper aims at conducting an analysis of the literature that exists on the impact of the Brexit on various areas of the performance of the British and the EU economy. The paper will take into account various areas of interest that include tourism, human resource, the law and the economy. The paper will make use of various sources that include newspaper articles, published reports and peer reviewed academic articles. The ultimate aim is to create a literature review of the impact that the vote by Britain leave the EU will have on various aspects of the performance of the economies. The literature review will take into account the objectivity, accuracy, reliability and the authority of the sources that has been used (Verderber, Verderber and Sellnow, 2011). This will clearly bring out the Reliability of the sources that have been selected.
- Impact of Brexit on the legal environment.
Trevor and Cook (2016) in their study explained that the Brexit would have a significant impact on the protection of intellectual property rights in the UK and Europe. In the short term, Brexit was expected to delay the ratification of the Unified Petents Court and the unification of Europe patent laws. The delay in the ratification of the patent system would have a significant negative impact on the protection of intellectual property. In the long term, the geographical area under which the EU patent laws are applicable would reduce. The UK would have to develop its own legislation that is aligned to that of the EU. The article gains accuracy, objectivity, reliability and authority from the fact that it is published in a peer reviewed journal.
Some of the research has focused on the Impact of the Brexit on environmental law. Reid (2016) conducted a study on the impact that the Brexit will have on environmental laws. The study notes that exit from the EU will give Britain greater control over its environmental policies. It will enable the country establish its own environmental policies with much less interference from the EU. On the other hand, the country will still be influenced by the obligations that it has with the international community. The exit may however lower the levels of government environmental accountability as the UK will no longer be subject to a majority of the EU environmental regulations. Accountability would be transferred to the devolved governments. In addition, the environmental management framework may be destabilized. The article was published in a peer reviewed journal, thus meaning the accuracy and objectivity of the information has been determined by other academics.
Basedow (2017) explained that Brexit will have a notable effect on the business environment through impacting the legal framework that businesses will be subject to. The actual impact of Brexit on the business environment will be dependent on the nature of the exit process. Britain may choose to exit after negotiating with EU for free market access in exchange for labor mobility or other aspects of operation. Britain may also choose to make a complete exit and only interact with the EU under the terms provided for by the World Trade Organization (Lea, 2016). Exit from the EU will lead to the annulment of various international treaties as well as various EU law. This will impact the legal environment that firms are exposed to within the UK. The authority and objectivity of the article is high as it was published on a peer reviewed journal
- Impact of Brexit on Human resource management
The Exit of Britain from the EU is bound to have a notable effect on the mobility of labor. Wadsworth et al (2016) notes that the EU provided a wide geographical area over which people from all the EU member countries could seek gainful employment. Exit of Britain from the EU will lead to a reduction of the geographical area over which workers can move. Non-native workers in the UK from other EU countries comprises of young, highly educated people. Wadsworth et al. (2016) notes that contrary to earlier perceptions, the expatriates from other EU countries did not lead to an increase unemployment among the natives. On the contrary, the expatriates ensured that there was a ready supply of labor for the industries that required highly skilled personnel. The study makes use of figures and graphs and is more over published in a peer reviewed journal, this serves to enhance the authority and dependability of the information it supplies
Sumption (2017) states that Brexit will have a two way impact on the UK. Just as it may limit the ability of employees from EU countries to work in the UK, it also places limits on the ability of UK citizens to work in other European countries. The impact will however not be immediate as the UK has a two year window within which to exit. This therefore means that business organizations have a two year period within which to reorganize their labor force. Brexit will have the effect of diverting talented employees to other European countries as a result of the adoption of strict regulations on work permit requirements. The study is determined to have high levels of objectivity and accuracy.
- Impact of Brexit on economy
Dhingra et al. (2016) explain that Brexit will firstly have the effect of reducing the amount of foreign direct investment (FDI) into the country. Britain had bene previously viewed by foreign investors as a pathway into the European market. I therefore follows that exit from the EU will lead to a decrease in the attractiveness of the country as an entry point into Europe. The decrease in FDI can be expected to impact on the performance of the economy and the creation of Jobs. The exit of Britain from the UK is expected to lead to some of the business organizations relocating their operations to countries that are within the EU as is the case with JP Morgan (Hodge, 2016). The relocation of the businesses will lead to an outflow of the FDI that has already been invested in the country.
Gourinchas (2017) explains that Brexit had the immediate impact of leading to a significant decline in the value of the British pound against other major currencies such as the Dollar and the pound. The depreciation of the pound had a significant impact on the value of the imports of the country. Britain is a net importer of energy products such as petroleum. This therefore meant that companies that depend on fossil fuels experienced a rise in their expenses related to fuel. This is pointed out to have bene especially the case for airline operators where fuel comprises a major component of their operating costs. The study is observed to have been authoritative as a result of its publication on a peer reviewed journal.
- Impact of Brexit on tourism
Tarlow (2016) explained that the key factors that may influence tourism are the ease of movement and the depreciation of the value of the pound. The decrease in the value of the pound will have the effect of making it cheaper for tourists to spend within the UK economy. This is especially for tourists who spend dollars. This may lead to an increase in the number of tourists that visit the country. The published report on the other hand explains that tourism is greatly aided by the elimination or reduction in the number of restrictions regarding the movements of people. Brexit will lead to greater restrictions of cross border movements into and out of Britain and the EU (Dhingra and Sampson, 2016). This can be expected to lead to a decline in the tourist activity in the EU and Britain. The report had been sponsored by the Argentinian government, thus granting it greater authority.
In an article appearing on the Telegraph, Trend (2016) outlines some of the means through which travelers may be impacted. A complete withdrawal of Britain from the EU will lead to an end of the Schengen arrangement. This will lead to a re-introduction of border controls and a limitation on movement of tourists. Travelers could also experience higher airfares. Budget careers such as EasyJet have depended on the free access that they have to the EU market as an enabler of cheaper air fares. The exit of Britain will however require them to renegotiate for access to the EU market. The negative effect on budget careers may increase the cost of traveling. The newspaper article however lacks authority as a result of the limited ability to ascertain the information that it contains.
Allen (2017) in an article appearing on the Guardian explains that tourism numbers have actually experienced an improvement since the Brexit. A key driver for this growth is identified to be the decrease in the value of the pound. Tourist number grew by 3% to record the highest ever recorded levels. The growth was driven by visitors from North America who spend in terms of the dollar which has appreciated in value. Tourists from the EU region grew by 8%. The growth in the number of tourists can be identified to have offered a significant boost to the performance of the UK tourism sector. Tourism by the UK travelers to other European countries however reduced as the depreciation of the pound made it more expensive to spend. The source has low levels of authority as a result of the low level of verifiability of the information which has not been reviewed by other parties.
It can be observed that the Brexit will have an impact on various aspects of Britain and the European countries. A majority of the effects arise from the expected end of the application of the Schengen arrangement in Britain, a decrease in the attractiveness of the UK as an investment destination, a change in the value of the pound, a decrease in the mobility of labor and a change in the regulatory environment. The various literature that has been analyzed paints a grim picture of the future effects of the Brexit. The tourism industry in Britain is however seen to be performing better in the short term.
Gourinchas, P.O. and Hale, G., 2017. Brexit: Whither the Pound?. FRBSF Economic Letter, p.11.
Dhingra, S., Ottaviano, G., Sampson, T. and Van Reenen, J., 2016. The impact of Brexit on foreign investment in the UK. BREXIT 2016, p.24.
Sumption, M., 2017. Labour immigration after Brexit: questions and trade-offs in designing a work permit system for EU citizens. Oxford Review of Economic Policy, 33(suppl_1), pp.S45-S53.
Wadsworth, J., Dhingra, S., Ottaviano, G. and Reenen, J.V., 2016. Brexit and the Impact of Immigration on the UK. Centre for Economic Performance. LSE, pp.34-53.
Tarlow, P., Brexit and its impact on tourism and security: The View from Texas, USA.
Basedow, J., 2016. BREXIT and Business Law.
Cook, T., 2016. “BREXIT” and Intellectual Property Protection in the UK and the EU.
Reid, C.T., 2016. Brexit and the future of UK environmental law. Journal of Energy & Natural Resources Law, 34(4), pp.407-415.
Allen, K. (2017). UK enjoys record tourism as fall in pound boosts visitor numbers. [online] the Guardian. Available at: https://www.theguardian.com/business/2017/feb/17/fall-in-pound-after-brexit-vote-uk-break-overseas-visitors-record-ons-north-american-tourists [Accessed 8 May 2017].
Nick Trend (2017). 10 ways Brexit could hit UK travellers. [online] The Telegraph. Available at: http://www.telegraph.co.uk/travel/comment/what-would-brexit-mean-for-travellers/ [Accessed 8 May 2017].
Dhingra, S. and Sampson, T., 2016. Life after BREXIT: What are the UK’s options outside the European Union?.
Verderber, R.F., Verderber, K.S. and Sellnow, D.D., 2011. The challenge of effective speaking. Cengage Learning.
Lea, R., 2016. Post-Brexit trading options for the UK. Arbuthnot Banking Group, 4.
Hodge, N., 2016. Uncertainty abounds after Brexit vote. Risk Management, 63(6), p.4.