Evaluation Of EU Markets Pre-Brexit For Non-EU Businesses

Before Brexit, the UK was considered the leading country for inward investment by foreign companies seeking to establish a position in the EU. However, other EU counties are now actively trying to steal that investment from the UK. All foreign companies located in UK has to adhere to all EU regulations for trading but had the advantage of the customs union for frictionless customs and acceptance standards for their products. For many companies already established in the UK, the total uncertainty is stopping long-term contracts being signed and the business is being lost to competitors.

Brexit pros

There will be a great deal of chances in more animated markets. Many claim that Brexit can free the UK from signing new trade deals with lively markets outside the EU. Neil Harris, EA Technology Limited, told Grant Thornton “one of the biggest inhibitors for us in some countries is withholding tax and the lack of mitigation through effective double tax treaties”. Despite recent slows, the larger markets like China and India are showing high growth rates, while even conventional basket cases in Latin America and Africa reaching growth excellent growth rates compared to the Eurozone. Brexit supporters argue that new agreements to exploit these growing markets will more than compensate for any damage to EU trade.

Brexit cons

Cross-border administrative burden and costs. To a certain degree, the UK’s departure of the regulatory system from its EU counterpart would more than likely cause cross-border trade more difficult. Dr Zulf Masters, Masters Pharmaceuticals Ltd, “At the moment we’re looking to acquire assets in Europe. If Britain left the EU that might affect our thinking, because administratively speaking it would be more difficult”. Masters continues, “we would leave the UK and go to Europe, because strategically it would be better to be in a market which is bigger and also more harmonised”. Businesses from the UK exporting to the EU could be subject to new tariffs, while smaller businesses who do not export could be affected due to the new import taxes and possibly resulting in them being discouraged from investing in the UK.

Conclusion

In conclusion, globalisation typically involves all countries around the world, of which some developing countries include: India, China, Africa, Iraq, Syria, Lebanon and Jordan, who are all affected. Be it beneficiary or adversely, the economies of these countries have improved under the influence of globalisation. There has been an increase in direct foreign investment, eliminating certain localised traditions and many bad habits. However, globalisation has brought many drawbacks to these countries. Although globalisation has many disadvantages, developing countries has seen greater advantages than disadvantages. For example, in both developed and developing countries there are now more opportunities to sell as many to consumers as they currently do. It could be said safely that this is the golden age for business, trade and trade. For example, there are now more opportunities for people in both developed and developing countries to sell as many goods to as many people they currently do. It could safely be said that this is the golden age for business, commerce and trade.