It is no surprise that the Brexit vote was a great blow to many UK-based companies. Trade arrangements that have been agreed upon by the UK and its neighboring countries will definitely entail difficulties and ultimately impede the relationship between them.
According to a study conducted by Statista on 404 UK-based companies and 378 German-based companies’ opinions, 14.5% had stated that Brexit would have a positive outcome, 47.1% had a neutral view and 6.2% thought it would have a negative impact.
It may be argued that being part of the EU is costly and not worth it, despite these allegations, studies have shown that SMEs have benefited greatly from the EU trading arrangement. According to the CBI, the European Union gives UK businesses preferential market accesses to over 50 countries outside Europe. In addition to this, CBI also states that remaining within the European Union provides the UK with easier access to a third of the world’s markets.
In this day and age, even SMEs are looking to expand globally and more than often the EU was there start off point in their endeavor to do so. This means that businesses within the UK must enter the single market and expand gradually.
Increased Trade with the Commonwealth
Although the vote to leave the EU was a major drawback to many (if not all) businesses within the UK, there are still some positive findings . As we all know the Commonwealth countries share similar values in many aspects such as democracy and human rights.
The tight-knit relationship between the Commonwealth countries could potentially be the solution to the problems that have arisen due to Brexit. The GDP of the commonwealth countries combined is very high and would rank in the top five of the world listings.
The UK, India, Canada and Australia contribute to the majority of the Commonwealth’s GDP. Leaving the EU could rekindle the relationship between the UK and the remaining Commonwealth countries, especially the ones that have strong economies.
Service or Product for a Cheaper Price
One of the main advantages to potential customers from Europe and all around the world would be the fall of the British pound. The exchange rate is in favor of customers based outside of the UK as they can get more Pounds for their Euros or Dollars. This is an excellent chance to get a service or product for a cheaper price.
This opportunity could be compared to a limited time only sale at high street stores. As the exchange rate is ever changing, it is wise to make the most of the current situation as it may not be available further down the line.
The Single Market Route
The UK will most likely be heading down the single market route, according to ‘Britain Stronger in Europe’ there are many benefits to this sort of trade. In regards to EU consumers, they can purchase a wider range of products or services that are of a higher quality at lower prices. Businesses, on the other hand, are not restricted by EU tariffs or custom duties, this will, therefore, result in lower costs, which is beneficial for both parties.
New Job Opportunities
There are many other benefits to Brexit, one of these are the demand for legal and financial services. This demand would essentially create more jobs within the UK. Large firms such as PwC, KPMG and Ernst and Young have put plans into action to deal with issues that have been caused by Brexit. These strategies include creating Brexit teams within companies and putting managers in place to supervise the activities carried out.
It may have been a disappointment to many that Britain had voted to leave the EU, especially for businesses and trading. However, there are advantages that have been brought about as a result of the referendum. These will satisfy both parties, the EU countries and the UK. It would also be a wise idea for countries to utilise the fallen GBP as they will be the only ones to benefit.
Brexit is a complicated situation with many unknowns and possibilities. All we have to do now is wait and see what potentially happens when negotiations begin. For now, though, European businesses can capitalise the exchange rate drop and place their document translation projects with us for 10% less.
Written by Abdallah Sultan.
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