Question

If the UK actually leaves the European Union, how might this have affect business throughout these countries? Will this action affect all UK countries similarly?  

Answer 1

EU includes 27 countries and Brexit may have adverse consequences for all members associated with it. It will affect most intensely to 19 nations Eurozone. Following would be impacts on businesses across the countries:

• Now business firms doing business would have to face new sets of rules in UK. Thus, these firms would be required to comply with new norms and regulations.
• New sets of tariffs and quotas would be created. Thus, products of EU would automatically become less competitive. Hence, many firms are likely to lose market share to competitors from elsewhere.
• Likewise, UK business houses would face new tariffs and quotas while entering EU. UK is also likely to lose the advantages of cheap labor.
• Rise in unemployment may be seen in the EU member countries.
• Brexit would not affect all countries equally. Countries with large number of migrants to UK and more trade relations with UK would face the negatives of Brexit in most severe way.