Daily Times

The United Kingdom is facing numerous political, social and economic challenges since the Brexit referendum in June 2016. Relationship with the EU member states remain in strain, while internal political turmoil and disagreement between opposition and ruling coalition on the triggering article 50 prompted wide-ranging debate in print and electronic media across the country. With the commencement of year 2017, British Prime Minister has been in muzzy as to whether retreat from her Brexit position or not, but some of her party members raised important questions about the loosing of single European market after withdrawal from the project. British economy appears to have weathered the initial shock of the referendum vote in 2016, and the value of Sterling Pound remained near a 30-years low. The EU single market is seen by its advocates as a great achievement but the present political and financial ruckus across the continent has put it in danger. The market which was completed in 1992 facilitated free movement of goods and other related materials across Europe but recent borders restrictions and terrorist attacks in some EU member states, the future of single market has become bleak.

Major political, economic, and technological developments in the continent and distrust between Britain and the EU project has prompted questionable situation in the trade market of the country, which is very much dependent on imports from European Union. The UK’s 58 percent exports go to EU, which is the biggest trade volume in the continent. Germany, Netherland and France are its bigger trade partners, while the United State also boosts the UK market by investing billion dollars in various sectors. International trade is undoubtedly, the exchange of capital, products and import and export-related activities across borders, but as is evident from the fact, the UK economy is dependent on foreign trade, for that reason the country is active in a multifaceted trade activities worldwide. There are hundreds largest international trade and investment corporations operating here of which more than 60 belong to the US investors.

John Dudovskiy’s recent study spotlights some global impacts on the UK business organization and elucidates that these impacts increase the level of multiculturalism in the country’s organizations, and level of interdependency of national economies. The impact of global forces on British market, as he noted are political, economic, social, technological, legal and ecological, while global environment and competitions are the main actors. These factors give us unbelievable understanding of lifestyle patterns and tastes of any population. Law and regulations are factors that can also affect British business strategies where business organizations need to find ways they can react to the change of law affecting their way of business within the EU member states. However, in the EU market, the UK organizations also need to regulate them. Political and global insecurity, Russian role in world market, weak growth, and China’s recent economic reforms are factors that can influence the spending habits of consumers in Europe. The development of transportation and logistics in EU member states played important role in facilitating trade and lowering cost of transportation across Europe. Internet, E-commerce and websites also leave effects on market economy.

The revolving nature of European economy, banking and monetary systems, EU tax rate, money supply system, cash reserve-ratio and fiscal policies can leave the same impact on British market economy. However, market structures in Europe such as perfect competition, monopoly and others can also impact the UK market, if business organizations did not meet marketing standard of every state, because maintain better quality standards, and fixing a reasonable price for the local customers are important requirements of the EU single market. Recently, some legal developments in France and Germany also created difficulties for the UK based business organizations. The new EU security and privacy requirements are important in impacting organizations business data share.

On 23 June 2016, the United Kingdom held referendum which left deep impacts on business industry in both Europe and UK. Now, with this act of the British government, the EU would apply its external customs duties on the UK goods, and it may possibly introduce non-tariff hurdles for goods. However, Brussels can also restrict UK’s ability to conduct euro transactions and euro-derivatives transactions, and thereby undermine the position of the London city as financial centre of the world. The UK citizens can also lose their right of open trade in all EU member states. Moreover, there are many factors of Brexit that can impact the UK based business organizations while some EU member states like Germany, Italy and Spain want integration. Brexit may also cause political instability in the UK and EU or the collapse of European Union, inflame anti EU sentiments in UK and can empower nationalist and eurosceptic forces. Brexit would not only be bad for Britain, it will also affect the EU markets. After a successful campaign David Cameron resigned on the pretext that he was against Brexit, while the fact of the matter is, he was behind the whole story, in which he played a crucial role. As a Prime Minister, David Cameron was very upset of the underwhelming attitude of EU leaders. They never allowed him to act independently, and challenged many internal policies of his government. These and other disagreements prompted the withdrawal of Britain from European Union.

Although, majority of the EU members states do not want Britain to have customize relationship with the project, but there is a constant need to limit the fallout of Britain’s withdrawal, and to strengthen relationship between the European Union states and Britain. Some statements issued from different political and military circles in Europe and the United Kingdom wrongly perceptualised the prospect of economic and military aggrandizement in the region. The UK withdrawal from the EU doesn’t mean that it will not cooperate with member states on several economic and political issues. The UK needs EU and EU also needs the country’s cooperation in countering terrorism, and intelligence sharing on law enforcement level. In 2015, Britain’s Strategic and Defence Review stressed that NATO is important for its security, while the country’s special relationship with the Unites States has also been mentioned that connection between the two states on nuclear, security, intelligence, diplomacy, technology and military build up plays a major role in guaranteeing the UK national security.

The writer is author of Fixing the EU Intelligence Crisis, can be reached at zai.musakhan222@gmail.com