LBPG5018 Extended Research Proposal Sample

Introduction

The fact that the degree of pre-referendum exposure that firms had to Europe had such a diverse influence on how they have responded to the Brexit was surprising to a lot of people, and it was one of the things that took a lot of people by surprise. In the weeks and months leading up to the referendum, analysts projected that there was a one in three chance that the United Kingdom would leave the European Union (Kordos,2019).

We may use a difference-in-difference estimate to determine the effect that the process of Brexit has had so far on the economy. To do this, we will combine data from the DMP on the level of individual firms with a dataset on population accounting. This will allow us to determine the impact that the Brexit process has had so far on the economy. This new research discloses three key findings that were not previously known to the scientific community (Erken,2018).

Background

Uncertainty surrounds the manner by which the United Kingdom will transition to its new position after Brexit, as well as the nature of the relationship at various times in time and the repercussions that each of these aspects will have on certain firms (Brown,2019).

An additional effect of the uncertainty brought on by Brexit is a decrease in investment in the United Kingdom of eleven percent compared to what would have taken place if this uncertainty had not been there (Moradlou,2021). However, contrary to the common belief, it took around three years for the entire effect of this decrease in investment to become evident. This was a longer period of time than most people anticipated.

Estimates were generated before the vote that anticipated that following the option to leave the EU, there would be a large decline in investment, but that this trend would reverse itself over the course of time. These estimates were correct. This delay demonstrates that businesses may not respond as quickly to large shocks that induce persistent uncertainty rather than short-term uncertainty.

Aims

The main aim of this research is to analyze the impact of Brexit on UK firms. The researcher has aimed to analyze the impact on import, export and global trade on UK firms after Brexit

Objectives

• To analyze the impact of Brexit on UK based firms
• TO analyze the impact of Brexit on import and export of UK based firms
• To analyze the impact of Brexit on global trade on UK firms after Brexit

Research question

• What are the impact of Brexit on UK based firms?
• What are the impact of Brexit on import and export of UK based firms?
• What are the impact of Brexit on global trade on UK firms after Brexit?

Rationale

In rationale , but certainly not least, our research indicates that the procedure of withdrawing from the EU has resulted in a drop in productivity in the United Kingdom that varies from two to five percent in the three years after the vote. The fact that companies are devoting a number of hours of their time each week to making preparations for Brexit is having a detrimental impact on the productivity of those firms.

It is anticipated that businesses that had a higher degree of worldwide market exposure have shrunk, in contrast to businesses that had a lower degree of international market exposure but had a smaller degree of detrimental influence between companies. This is because businesses that had a greater degree of worldwide market exposure were more likely to be affected by competition from other companies.

Literature review

Businesses in the United Kingdom incurred financial losses as a direct result of the new customs and regulatory barrier, which made it significantly more difficult and expensive for those businesses to engage in trade with the European Union. As a result of these new barriers, businesses in the United Kingdom were unable to engage in trade with the European Union, which led to the aforementioned difficulties and costs.

Businesses in the United Kingdom suffered monetary losses as a direct consequence of this obstruction, which impeded trade. Numerous studies, using a wide range of research approaches, have been carried out in an effort to quantify the extent of this impact by assigning a numerical number to the level of its significance. Even though it is still early in the year, an analysis that was conducted by UKTPO using data from the first three months of 2021 indicates that the United Kingdom’s exports to the EU have decreased by 15%, while the United Kingdom’s imports have plummeted by 32%.

The analysis was conducted using data from the first three months of 2021. The data from the first three months of 2021 were used in the study that was carried out. The information presented here is based, in large part, on the data gathered during the first three months of the year 2021.

The Centre for European Reform arrived at the conclusion that the decision made by the United Kingdom to withdraw from the single market and the customs union of the European Union resulted in a loss of £10 billion, or 13.5 percent, in the value of products traded by the nation in May 2021 [3]. This represents a loss of 13.5 percent of the total value of the products traded by the nation.

This results in a decrease of 13.5% of the total value of the items that are traded by the country. Because of this, the overall value of the products that are traded by the nation has decreased by 13.5%. Over the course of the last several years, there has been a substantial shift in the prevailing worldview of the globe.

According to polls that have been conducted since January 2021, the effect on firms in the UK that deal in exports and imports has not yet been noticeable. This is the case despite the fact that the impact is expected to become apparent in the following year. [4] In the month of March 2021, EY and London First collaborated to carry out a survey that was sent to one thousand different companies throughout the United Kingdom.

This survey was a joint effort between the two companies. According to the findings of the survey, seventy-five percent of businesses said that it was becoming more difficult for them to carry out their usual operations as a direct effect of the Brexit. Despite this, just 21% of the people who were affected by the outage rated the intensity of the disruption as being “severe.” Seventy-two percent of the companies that were negatively affected were experiencing difficulties with delays in their supply chains and customs clearance

Methodology

It is quite likely that one of the contributing elements that contributed to the current state of affairs was the lack of transparency about the schedule for the process of exiting the European Union (Brexit). The DMP believes that there is a 10% possibility that Brexit will never take place on the basis of the replies to a question addressing the timeframe of the process, as can be seen. Here the researcher has planned to use the secondary type of data analysis methods, that will help in gathering  data in secondary methods like articles , journals and websites.

The information provided in answer to the question was used to generate this estimate. The unpredictability of the situation has a variety of repercussions for businesses, each of which may be understood in their own unique manner. The information that is presented in Figure A10 indicates that businesses are concerned about the potential impact that Brexit could have on a wide variety of issues, including employment, regulations, demand, customs, and supply chains (Jones,2021).

Ethical issues and considerations

Second, businesses in the United Kingdom should anticipate a wide range of consequences as a result of Brexit. The firms in the study sample that were most at risk were those that had substantial trade volumes with the EU, high numbers of EU migrants working for them, and greater coverage by law from the European Union. This provides us with the diversity among organisations that is essential for us to have in order to estimate the effect that Brexit will have.

Time table

Proposed Analysis

Either the business has to hire an agent, or it can manage the additional paperwork at the border on its own. Neither option is ideal. The corporation will not even consider one of these possibilities. These two options are both undesirable to choose. Both of these alternatives are unfavourable choices that one may choose. You need to have at least a cursory familiarity with the norms, standards, and practises of the community that is in dispute in order to make any of these judgments.

Employing a broker to assist with imports and exports does not absolve a company of the responsibility of ensuring that all required documentation is complete and accurate, nor does it exempt the company from complying with all applicable regulations.

Rather, it merely shifts the burden of responsibility for compliance from the company to the broker. Instead, it only transfers the obligation for compliance from the corporation to the broker, who was previously responsible for it. Instead, it only shifts the responsibility for ensuring compliance from the business to the broker, who was in charge of making sure everything was in order before.

Instead of placing the obligation for accountability squarely on the shoulders of the company, this approach places it squarely on the shoulders of the broker. It’s likely that some individuals have a difficult time getting their brains around the responsibilities that are unique to them alone when it comes to matters that are related with customs. Despite this, even knowledgeable importers and exporters often fail to comply with all of the customs legislation that are now in effect in the UK.

Summary

Using the findings of Moradlou (2021), which investigates the connection between uncertainty and value-added since the vote, it is possible to arrive at an estimate of the value-added that each company would have experienced if the United Kingdom had chosen to continue its membership in the European Union. This can be done by following the instructions given in the previous sentence.

Instead of using the value that was anticipated in the step before this one as our beginning point, we use the value of pre-referendum productivity as our starting point, and we estimate that the level of uncertainty that each firm confronts is somewhere between 1 and 4.

After that, we reweight the pre-referendum aggregate productivity based on these alternative estimates of value added, and then we compare this revised number to our baseline. The results of this study indicate that since since the vote to leave the European Union, there has been a drop in the growth of overall productivity of around 0.1 percentage points each year.

References

Erken, H., Hayat, R., Prins, C., Heijmerikx, M. and de Vreede, I., 2018. Measuring the permanent costs of Brexit. National Institute Economic Review, 244, pp.R46-R55.

Kordos, M., 2019. British-Slovak Foreign Trade Relations: Consequences of Brexit.

Cucinelli, D., Farina, V., Schwizer, P. and Soana, M.G., 2020. Better the Devil You Know: The Impact of Brexit Political Uncertainty on European Financial Markets. International Journal of Business and Management, 15(6), pp.62-83.

Brown, R., Liñares-Zegarra, J. and Wilson, J.O., 2019. The (potential) impact of Brexit on UK SMEs: regional evidence and public policy implications. Regional Studies, 53(5), pp.761-770.

De Lyon, J. and Dhingra, S., 2021. The impacts of Covid-19 and Brexit on the UK economy: early evidence in 2021. London: Centre for Economic Performance, London School of Economics and Political Science.

Malik, A., Adekoya, O.D., Ajonbadi, H.A. and Jimoh, I., 2019. Investigating the potential economic impact of Brexit decisions on business performance in the United Kingdom: A case study of the UK construction industry. International journal of management, accounting and economics, 6(4), pp.347-367.

Jones, A., 2021. Tax teams confront the initial impacts of Brexit. International Tax Review.

Xiong, W., 2022, April. Impact of Brexit on UK-China International Trade. In 2022 7th International Conference on Social Sciences and Economic Development (ICSSED 2022) (pp. 909-920). Atlantis Press.

Sastry, V.V.L.N., 2020. BREXIT-and Its Impact on India’s Export Business. Idea Publishing.

Moradlou, H., Reefke, H., Skipworth, H. and Roscoe, S., 2021. Geopolitical disruptions and the manufacturing location decision in multinational company supply chains: a Delphi study on Brexit. International Journal of Operations & Production Management.

Moradlou, H., Reefke, H., Skipworth, H. and Roscoe, S., 2021. Geopolitical disruptions and the manufacturing location decision in multinational company supply chains: a Delphi study on Brexit. International Journal of Operations & Production Management.

Tien, N.H., Dung, H.T., Vu, N.T., Doan, L. and Duc, M., 2020. Brexit and risks for the EU economy.

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