Course: BUSI 1695 - International Business Environment

Lecturer: Mr. Vo Minh Hoang

BREXIT
Presented by
Truong Van Nhi
Tran Thi Phuong Nhi
Bui Vu Khanh Duy
 01 Definition

02 What trigger labour shortage?

CONTENT 03 Impact on UK and global economy

Impact on British business and international

04 business in UK
Impact UK’s global position in term of economic
05
and political strength

06 Latest situation

07 Opinion
WHAT IS BREXIT?
• Brexit is a compound word of "Britain" and

"exit".
• On Thursday 23 June, a referendum in the UK

was held.
• On 31 January 2020, the UK officially

separated from the EU.

WHAT TRIGGERS LABOUR SHORTAGE?
BREXIT
• Ended free movement between the UK and the EU.

• Difficulties in requirements visa systems.

• Europe country's salaries are higher than the UK's.

COVID-19
• Increases sickness absence and self-isolation.

• Reduce immigration.

• International labor shortage.

HOW LABOUR
SHORTAGE IMPACT UK
• Affected from haulage to retail, food and drink and

manufacturing.

• Shortage of goods and services.

• Small businesses suffer from less-well resources and ability

to pay with higher wages.

• Inflation.
HOW LABOUR SHORTAGE IMPACT
GLOBAL ECONOMY
• Lead to supply chain disruptions.

• Pushed up the cost of goods and services.

• Increased migration barriers --> reduce worker welfare in

sending & receiving countries.

 • Save 350 million pound per week by not contribute to the EU.

• British pound lost its value.

• Dropped from the top to the bottom in terms of economic

growth among the G7 group.

• Bear additional fees according to EU regulations of the origin

of exports.

• GDP per capital will be around 3% lower in 2030.

IMPACT ON
Brexit
BRITISH ECONOMY
 • New barriers to trade and migration between the UK and the

European Union.

• London’s position as the European financial center maybe at

risk.

• Reduce the FDI investment into the UK.

INTERNATIONAL
Brexit
BUSINESS IN THE UK
 NO LONGER BEING A MEMBER OF THE EU
CAUSED EFFECTS ON THE UK
Economy
• People's income will decrease.
• Exports to the EU account for the majority of UK exports.
• The British economy will fall into recession.
• On the other hand, losses due to prolonged instability lead to trade
costs.

British Politics
influences • UK troops could be in danger.
• The US will no longer consider the UK as an important ally as it does
today if the UK separates from the EU.
• The UK will no longer be at the negotiating table with its decisions.
 UK LATEST SITUATION

• The UK is still experiencing the economic and social consequences of Brexit in 2023.
• Economy grow slowly since Brexit.
• Labour shortage, disrupted businesses and supply chains still not settled.
• Public opinion is devided.
• The UK government is taking a number of steps to address the challenges posed by Brexit.
OPINION
Brexit was not a good idea for the UK:

• Heavy economic losses.

• Create labour shortage; pay growth and sterling

fell.

• The call for the second referendum.

THANK YOU
FOR YOUR
ATTENTION
Reference
Henley, J., Savage, M. and Tapper, J. (2021) ‘Emergency visas won’t tempt European lorry drivers to UK, say haulage chiefs’, The
Guardian, 25 September. Available at: https://www.theguardian.com/business/2021/sep/25/european-lorry-drivers-will-not-want-to-come-
to-uk-warn-haulage-chiefs (Accessed: 2023).

Thomas, H. (2021a) ‘Labour shortages must not be seen as simple case of business vs Brexit’, Financial Times, 4 October. Available at:
https://www.ft.com/content/7c8bf648-dd0a-4558-9544-f77bde4798b2 (Accessed: 2021).