Question

In: Economics

whether the result of British referendum to withdraw from the EU (‘Brexit’) has had an impact...

whether the result of British referendum to withdraw from the EU (‘Brexit’) has had an impact on your company’s return and its beta.

Solutions

Expert Solution

The United Kingdom left the European union on 31st January 2020. By leaving the European union the UK authentically, mechanically legally leaves 100 of international agreement. Concluded by or on behalf of the European union.to the benefit of its members date on topic as different as trade aviation fisheries for civil nuclear cooperation.

Brexit will weaken the European union automatically and politically. The United Kingdom was the European union second biggest economy after Germany a major net budget contributor ki military force and one of the bloc's two nuclear power and permanent United nation security council members.
Because of brexit pressure is mounting as more business are losing patience and fear of a no deal brexit have caused companies like Airbus to consider moving their UK operations to the the mainland putting thousands of job at risk.Sony has already announced the transfer of its European headquarter to the Netherlands to avoid brexit distractions.
Companies like Vodafone and Visa have strongly considered relocating offices and jobs to mainland Europe. Other companies have delayed big projects as a a direct result of the vote, including Nissan who planned on investing in there Sunderland plant, or Siemens who have delayed their investments in wind turbines and want to rethink there strategies.
After brexit changes for UK businesses as follow:-
Currently the European union market covers 28 countries with 500 million potential customers.not being part of the European union eliminates the privilege of free trade free movement of goods and services and people and with it cut off direct across to the massive pool of prospective buyers.along with Germany and France the UK belongs to the strongest market in the European union. But due to brexit the internal market will be harmed. The United Kingdom will lose its most important trading partners with countries like Germany or upcoming markets including Spain. Brexit will probably lead to a situation where the current laws are not repealed however eventually the interpretation of legislation will change when English quotes will not be required to consider the ruling of the ECJ.

Because of above-mentioned situations businesses will hampered and their profits also hampered. That will impact on there taxes and returns also.


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