Question

Evaluate implications of brexit in terms of policy of the 4 political and economic principals the EU has been predicted: free movement of goods, services, labor and capital. what are the options available? is there a strategy that benefits EU and UK?

Answer 1

The very essence of the European Union are the four freedoms : free movement of goods, services, labour and capital. The world's largest economy and single market has been created by establishing the four freedoms across the European Union 's current 28 members. Brexit is likely to impact the four freedoms since UK is going out of the single market even though the  desire to pursue freest possible trade is expressed simultaneously.

Free movement of goods :

Tariff free trade is currently possible between UK and EU because of free movement of goods. Brexit should pave the way for a mutually beneficial deal which is desirable for both. If no agreement is reached the UK should trade in line with the rules of the World Trade Organisation.

Free movement of services

An important element of the EU's free trade in services is the ease of doing business it allows. The current approach establish the  right to set up a company in another member state without additional compliance . Brexit makes the things more complicated. Also, they need to work on dispute resolution since UK no longer fall under the jurisdiction of the European Court of Justice.

Free movement of labour

This principle allows the workers from EU nations to settle and work in UK without any restrictions. The desire to control immigration is clear from the Brexit white paper. This will affect the availability and quantity of talent in UK and in other EU member countries .

Free movement of capital

This allows companies to raise capital across borders more easily. With Brexit an issue which the UK companies would face is the inability to access the funds from European Investment Funds.

The implications of Brexit are wide ranging. A thorough risk assessment should be made by any organisation before investing in UK and plans should be made to reduce the negative impact. There should be changes made to the business strategy in order to cope with the present scenario. This can also be considered as an opportunity to identify and create more effective and efficient way of working.