There are current issues that affect international business. One of the current issues is the Britain exit (Brexit) in the European Union. The article focuses on how the exit of Britain could affect the economy of Britain. Notably, the economy of Britain has tremendous impacts on the global economy and international business. Most of the companies in Europe have developed because of the European Union and their involvement in international trade. Brexit could disintegrate the European projects that are streamlined towards enhanced business and economic growth (Goodman). For example, a bartender asserted that exit of Britain could lead failure of business.
Brexit affects international trade through tariffs and other trade treaties. For example, Brexit may result in an increase of duty on exports, especially in the country that Britain products was exported duty-free within the European Union. On the same note, Brexit could affect international businesses through labor and exchange rates (Goodman). Business partners with Britain and all the investors have held their decisions until Britain make a decision on whether to exit or remain within the European Union. Brexit could take Britain a step away in the international business. The primary focus of citizens in Britain is to reduce the number of immigrants.
Customers tend to remain cautious in ordering products from Britain manufactures. This means that the situation may worsen after the referendum. Brexit could put manufacturing companies and trade at risk. This is because consumers of products manufactured in Britain come from various countries in the world. Economic models show that Brexit could impede foreign direct investment and international trade (Goodman). Other countries in the world may decide to stop trading with Britain and focus on other faster-growing economies such as India, United States, and China. Britain could lack the opportunity to be part of the fast-growing economies. In the general perspective, Brexit is a current issue that affects the international businesses.
Work cited
Goodman, Peter. (May 20, 2016), Brexit, a Feel-Good Vote that could Sink Britain’s Economy. New York Times. <http://www.nytimes.com/2016/05/22/business/international/brexit- referendum-eu-economy.html?_r=0>
