International Business Strategies
Britain wanting to exit the EU has come as a shocker to many especially the investors and the business people. This is a significant example of how such international issues affect the business decisions. Many investors are feared to want to withdraw their businesses from Britain especially those that rely on raw materials from the EU member countries like Germany. The free trade privilege that they once enjoyed when importing their raw materials will be no more, and the costs of getting supplies will shoot up. Britain experienced a great deal of economic integration with the EU members, and its decision to want to exit from Eu is worrying to the business people in Britain (The Economist, para 2).
The financial sector is in chaos as many financial institutions in Britain are planning to exit their operations from Britain to overseas. Banks like Lloyd’s of London have started opening up subsidiary banks. These moves by the financial sector are feared to bring along severe financial crisis to Britain’s economy. Business people in industries like the hotel industry, the manufacturing industries, science research industry have started to recruit more local Britain workers with the fear that the foreign ones will start packing their bags (The Economist, Para 3).
There has been a first ever in a long-time report of a steep fall in the value of the Britain currency(pound). This has led to many effects some good and some negative for companies around the world. The silver lining that one could point out of this steep fall is the fact that it has been beneficial for enterprises that carry out their business overseas as the fall of the pound has brought good profits for them. There are fears that if indeed Britain exits from the Eu, unemployment levels will increase because of the recession that will lead to laying off workers to curb the recession.
Work cited
"A nasty spat erupts between Britain and the EU." The Economist. The Economist Newspaper, 04 May 2017. Web. 28 May 2017.
