Question

An in depth analysis of a current issue in international business introducing the issue at first as you found in the source of the material, address its impacts on the world economy as well as the domestic economy, describe the responses from the other trading partner countries, articulate the issue from theoretical viewpoints, and finally give your thoughts from an analytical viewpoint on the issue?

Answer 1

Recent issue in international business which has taken place is the separation of Britain from European Union. This is widely known as Brexit, ie. the exit of Britain from EU. It will cause a high impact on European Union as Britain contributes maximum to the Budget of EU. Thus other countries are being advised to reduce their expenditure in order to fill the gap in the budget. There would also be ideological shift as UK is an influential player in the European Parliament and the Council of European Union.

While the impact of Brexit on UK and EU was minimal, they both would become each others biggest trading partners but the impact on other countries was profound, such as Belgium, Cyprus, Ireland, Germany and Netherlands. The Republic of Ireland would get deep impact because of its common land border with United Kingdom and its close agrirelated business with Northern Ireland. Once the customs borders would be introduced, it would be economically and politically detrimental for both the sides.

The industry which would be highly impacted due to UK withdrawal would be motor parts industry as UK is the leading manufacturer of motor parts.