International Relations

International 1

INTERNATIONAL RELATIONS

Name

Course

Instructor

Institution

City

Date

International 2

Introduction

Brexit implies to the referendum held in making the decision on whether British

should remain a member state of EU. The exit is associated with numerous economic and

political consequences for both the UK and EU. The post-referendum trajectory is highly

dependent on the nature of the exit whereby orderly exit guarantees spirited partnership with

the EU while the acrimonious exit is associated with massive legal consequences.

Brexit has a significant impact on the relationship between the UK and other

members’ states of the EU. Some of the notable International Relations theories influenced

by Brexit entail realism and institutionalism. These principles play a significant role in the

unification of the member states of EU. The major implication of Brexit lies in the economic

actions adopted by the UK that guarantee the widespread loss of both the jobs and economic

stability. Despite the presence of adverse effects associated with Brexit, the move as well

assures of the reduction in taxes for the UK citizens and the decline in the burden of

immigration as well (Saccardo & Colombaioni, 2016, pp.12).

Impact of Brexit on EU

The effect that Brexit has on the EU is widespread and drawn out. The nation would

have to reestablish new agreements with the member states of the EU as its exclusion from

EU unbinds it from the initial negotiations (Malhotra, 2016, pp.5). Furthermore, the process

of forging the new contracts is time consuming which is likely to impact negatively on the

status of the businesses between the nations. Therefore, Brexit is likely to result in substantial

uncertainty of the business operations between the various member states of the EU and UK.

In addition to the economic implications, the exit is attributable to numerous other

challenges. These challenges include an impact on the unity of EU and its significance in

Europe.

International 3

Integration of the EU and its importance in Europe

The provision for a renegotiated relation between the UK and EU is associated with

the challenge of setting a bad example to other member states. The UK exit sets an example

that challenges the role of EU integration likely to result in other nations exiting the union.

The progress of UK on Brexit presents an opportunity for the remaining member states to

observe their coping capabilities outside EU. Provided the other nations remain united and

EU experience minimal challenges associated with the exit of the UK is likely to result in

confidentiality regarding its operations as it will appear as though a seemingly awkward

partner linked to numerous challenges is gotten rid of. The remaining nations would thus

align themselves towards supporting integration. The arising of problems in the EU on

Brexit, however, demonstrates the necessity for the management of some of the common

problems.

Balance of power

The departure of UK from EU is likely to result in an upset to the complex relations

existing between the rather large and small member states and the liberal free-trading nations

and those dependent on the concept of protectionism guaranteed to the member states of EU.

The relation between France and Germany considered the core of EU integration is greatly

dependent on the UK to ensure balance. Brexit thus presents the challenge of exposing the

EU institutions to the loss of influences from the UK. Furthermore, the exit forces the EU to

renegotiate the QMV and the state quotas. Additionally, on Brexit EU has to find a way of

ensuring success in making up for the loss of the contribution to its budget made by the UK.

Political economy

Brexit has a significant impact on the economic status of the EU. The UK makes up

about 15 percent of the commercial area of the EU. Furthermore, the nation represents about

International 4

20 percent of the EU exports. Therefore, Brexit assures of loss of revenue and market that is

detrimental to the economic status of the union (Hobbs, Bacon & Barnett, 2016, pp.11).

Brexit as well assures of the loss of the economic influence that UK has on the economy of

EU through its support for the concept of free trade resulting in EU that is rather protectionist

and inward looking (Murray, 2016, pp.27).

Security and global relations

The UK and France are notably vital in the efforts made by the EU towards

establishing policies necessary for affirming the foreign and local security. Brexit thus

undermines the efforts achieved in establishing policies essential to the protection of the

member states of EU. The exit as well results in a notable undermining of the efforts made by

other nations towards ensuring the establishment of a strong defense.

Mergers, capital markets, and corporate law

The UK manages the mergers in the EU. It is likely to arise challenges depending on

the exit strategy adopted by the UK. The areas likely to experience complications entail the

cross-border merger, the asset sale, and clearance of the mergers and the rules that affect both

the status and entitlements of the employees (Drucker, 2016, pp.15). The implementation of

both the capital markets and raisings is as well likely to experience significant problems on

the exit of UK from the EU.

Presently, the UK is charged with the role of approving the prospectus after which the

prospectus become applicable across the members’ states of the Union. However, Brexit

results in the need for dual compliance process for the approval of the prospectus, which is a

time-consuming activity.

Trade within EU

International 5

Brexit results in the reduction of trade between the UK and EU that is detrimental to

both sides. Despite the fact that EU is a more vital business partner in comparison to the

extent to which it depends on the UK, the demand created by the UK in the trade is essential

in ensuring macroeconomic equilibrium within the EU (Renison, 2016, pp.62). The UK

accounts for a smaller portion of the EU economy. However, about ten percent of EUs

exports are to the UK while half of the UKs exports are to the EU nations. The imbalance in

the trade relations evident in such a case results in the dependence on the UK for the supply

of the various commodities by some EU nations. Brexit thus presents a notable challenge to

the relationship between the nations in regards to demand and supply of the various

commodities.

Foreign Direct Investment (FDI)

The UK represents one of the largest recipients of the FDIs in the UK. Brexit is thus

likely to result in significant reduction in the attractiveness of the nation as the gateway to

Europe. The exit is as well likely to cause a significant reduction in the investment from the

member states of the Union to the UK. Brexit sets back the commercial logic for the FDI

attributable to the corporations of the major European nations in the UK (Glencross, 2015,

pp. 307). Furthermore, the cost of adjustments in compliance with the conditions of Brexit is

likely to be significantly high.

The UK is thus liable to the establishment of competition for the FDI through

undercutting the EU concerning the policies on taxation of the foreign corporations and

ensuring the improvement of the business environment (Agbonlahor, 2016, pp.9). The

success attributable to the ability of the UK to attract the FDI projects results in notable risks

and the creation of some opportunities for the EU nations on Brexit. Brexit results in the loss

of competitiveness of the present opportunities that the EU countries need to seize. Brexit is

International 6

likely to lead to critical challenge of attracting the multinationals away from the UK.

However, resolving the competitiveness in such a case entail the enhancement of the business

environments by the EU nations.

The fact that UK is bigger and extensively liberated by both the obligations and

constraints of the EM membership makes it easier for eh nation to restore its competitiveness.

Additionally undercutting the EU through enforcing policies that favor FDI through

flexibility in their regulations and taxation is an effective way of retaining the competitive

advantage of the nation. The result is the distortion of the location choices in addition to

drawing the FDIs away from the EU. However, concerning FDI, Brexit could result in

benefiting the firms of the EU nations through putting pressure on their governments towards

improving the business environments essential in attracting the FDIs.

Liberalization and Regulation

Brexit has an adverse effect on the equilibrium in the EU Council concerning the

debates on the economic policies. Brexit is likely to result in the notable shift in the balance

resulting in the loss of support from some states concerning the concept of liberalization.

Brexit is attributable to the emergence of challenge experienced by Germany in acting as the

swing state in some of the important regulatory discussions. Brexit is thus associated with

important political exposure of Germany whereby it has to lead the opposition to some of the

considerably illiberal measures.

The UK represents some of the states considered economically liberal. The nation

thus plays significant role in the opposition of some of the illiberal proposals within the EU

Council. However, Brexit is likely to result in the notable shift in the balance of power in the

EU Council. The liberal nations are likely to meet the required target for the opposition to

individual proposals in the committee that is illiberal. Additionally, the dependence on the

International 7

UK by Germany in counterbalancing the regulatory debates is likely to be in jeopardy. The

counterbalance usually presents an opportunity for Germany to act as the voice of reason in

the debates regarding some of the vital policies. Brexit thus exposes Germany hence be

forced to assume adversarial positions. The role of UK in the debates is crucial as evident in

the past whereby it has effectively used its position in framing some of the policy debates

concerning liberalization terms.

Industrial policies

The model of Brexit adopted by the UK has a significant impact on the industrial

policy in the EU. Brexit is likely to force the various business institutions to bear the costs

attributable to the mergers, as they are subject to separate observation by both the UK and EU

authorities. Furthermore, Brexit is likely to result in the change in the application of the EU

competition policy, as the exit will lead in the UK not playing an influential role in the

competition network of the EU (Scroxton, 2016, pp.9).

The UK is likely to adopt a rather different approach in facilitating procurement

through the exploitation of the government discretion especially in situations whereby the

nation is under extreme political pressure. The influence that the UK exhibits over both the

culture and style adopted in the regulation of certain sectors is likely to diminish on Brexit.

The UK played a significant role in influencing the targets set for the reduction of the

emissions in 2030 through ensuring success in the fight for the call against the addition of the

binding targets concerning the renewables and energy efficiency. Brexit is likely to result in

the difficulty in accessing the UK universities by the individuals from the other EU nations.

The complicated relationship between the EU and the UK is attributable to the difficulty on

the accessibility of the opportunity to learn in the UK institutions through the public funding.

Immigration

International 8

Immigration entails a serious political issue in the UK due to the uneven distribution

of the costs and benefits associated with the act (Geoghegan, 2016, pp.6). The Brexit model

thus plays a significant role in the determination of the scope adopted concerning tightening

the immigration laws. Immigration plays a significant role in addressing the challenges

associated with the shortage of both skills and labor. Brexit is attributable to a positive effect

on the nations such as Poland that are the primary sources of immigration to the UK. The

policies imposed by the UK on immigration are likely to result in the deflection of the

immigrants to other nations of the EU. The deflection is likely to lead to the injection of

capital to the economy of these states through the taxes associated with the immigrants and

the growth of businesses (Fichtner, Steffen, Hachula & Schlaak, 2016, pp.305).

Financial services

Brexit affects the location, cost of the fiscal services and liquidity. The influence is

attributable to its effect on the competitive position of London. The UK perfectly integrates

with the EU fiscal system. The European bank's exposure in the UK is seemingly greater

hence; the relocation of the European banks away from the capital of UK is costly. London is

established as the international center that dominates the EU in numerous areas. Brexit is

likely to impact adversely on the international position held by London hence resulting in

notable damage when the European businesses migrate (Abell & Nadler, 2016, pp.42). Brexit

presents the risk of some of the businesses dealing with the provision of derivatives leaving

Europe on Brexit.

Some of the notable beneficiaries of Brexit on the financial services include Paris,

Amsterdam, and Frankfurt. However, the fact that London is established as an international

center of commerce presents a challenge in replicating the services provided its financial

institutions by other cities of the EU nations (Romeo, 2016, pp.9). The competition out of the

International 9

need to various institutions in tapping the market associated with the provision of the

financial services is likely to result in significant disruption and incurrence of extra costs. The

businesses located in the EU nations are thus likely to lose immensely due to the higher

charges imposed, the provision of products of poor quality and reduction in liquidity. Brexit

is thus likely to result in the EU corporations finding it costly and inconvenient to raise

capital. Brexit is thus attributable to the significant shift in the equilibrium regarding the

financial regulatory debates amongst the EU nations.

International influence

Brexit is attributable to the loss of the effect in regards to both the military terms and

the foreign policies of the EU. The UK and France stand out as the important European

powers. The UK ranks highly in regards to the soft powers that facilitate the ability of a

nation to varying the behavior of others easily through both persuasion and attraction. The

UK, therefore, exhibits vital influence for the EU. Brexit thus affects the soft power of EU

significantly through resulting in the diminishing of the union’s soft power assets and critical

damage of the other nation’s perceptions regarding the bloc.

Additionally, UK has hard power assets essential in the provision of the adequate

source of influence of EU. The EU benefits immensely from the funds it receives from the

allocations by the UK for the military and foreign policies. The UK further provides the EU

with an important advantage in the application of the sanctions. Brexit, therefore, presents a

challenge to Germany, as it will have to play a bigger role in both the Security foreign

policies.

In conclusion, the discussion successfully considers the impact that Brexit has in the

EU. The UK plays a significant role in making decisions about the implementation of certain

vital policies. Brexit, therefore, presents significant challenges to the achievement of the

International 10

objectives of the aims of the union. The discussion thus explains the impact that Brexit has on

the relationship between UK and EU through consideration of the aspects of IR. The striking

aspects of IR likely to be affected by the exit include liberalism and institutionalism.

International 11

List of references

ABELL, M, & NADLER, S 2016, 'How Does Brexit Impact International Franchisors with

Franchisees in the EU?', Franchising World, 48, 8, pp. 42-44, Business Source

Complete, EBSCOhost, viewed 20 November 2016.

Agbonlahor, W 2016, 'How leaving the EU will impact the UK's environmental

regulations', Planning (14672073), 2033, p. 09, Business Source Complete,

EBSCOhost, viewed 20 November 2016.

Drucker, V 2016, 'Preparing An Exit Strategy. (cover story)', Global Finance, 30, 5, pp. 14-

17, Business Source Complete, EBSCOhost, viewed 20 November 2016.

Fichtner, F, Steffen, C, Hachula, M, & Schlaak, T 2016, 'Brexit decision is likely to reduce

growth in the short term', DIW Economic Bulletin, 26/27, pp. 301-307, Business

Source Complete, EBSCOhost, viewed 20 November 2016.

Geoghegan, J 2016, 'How EU poll has ignited debate over migration's impact on housing

need', Planning (14672073), 2031, pp. 06-07, Business Source Complete,

EBSCOhost, viewed 20 November 2016.

GLENCROSS, A 2015, 'Why a British referendum on EU membership will not solve the

Europe question', International Affairs, 91, 2, pp. 303-317, Academic Search Premier,

EBSCOhost, viewed 20 November 2016.

Hobbs, T, Bacon, J, & Barnett, M 2016, 'MARKETERS FACE BOTH RISK AND

REWARD AS UK VOTES FOR BREXIT. (cover story)', Marketing Week, pp. 8-11,

Business Source Complete, EBSCOhost, viewed 20 November 2016.

International 12

Malhotra, D 2016, 'A Definitive Guide to the Brexit Negotiations', Harvard Business Review

Digital Articles, pp. 2-16, Business Source Complete, EBSCOhost, viewed 20

November 2016.

Murray, D 2016, 'Reflections on the Brexit Vote', Commentary, 141, 6, pp. 27-30, Academic

Search Premier, EBSCOhost, viewed 20 November 2016.

Renison, A 2016, 'BREXIT WHAT IT MEANS FOR YOUR BUSINESS', Director, 69, 10,

pp. 58-63, Business Source Complete, EBSCOhost, viewed 20 November 2016.

ROMEO, V 2016, 'The Brexit effect on platforms', Money Marketing, pp. 8-9, Business

Source Complete, EBSCOhost, viewed 20 November 2016.

Saccardo, N, & Colombaioni, G 2016, 'Italy: Brexit: potential consequences on the tax

relations between the UK and Italy', International Tax Review, p. 12, Business Source

Complete, EBSCOhost, viewed 20 November 2016.

Scroxton, A 2016, 'The implications of a Brexit vote for the UK's broadband

infrastructure', Computer Weekly, pp. 8-10, Business Source Complete, EBSCOhost,

viewed 20 November 2016.

Place new order. It's free, fast and safe

Paper type

Deadline

Page count

550 words

Total price: $ 15.00

Our customers say

Jeff Curtis

USA, Student

"I'm fully satisfied with the essay I've just received. When I read it, I felt like it was exactly what I wanted to say, but couldn’t find the necessary words. Thank you!"

Ian McGregor

UK, Student

"I don’t know what I would do without your assistance! With your help, I met my deadline just in time and the work was very professional. I will be back in several days with another assignment!"

Shannon Williams

Canada, Student

"It was the perfect experience! I enjoyed working with my writer, he delivered my work on time and followed all the guidelines about the referencing and contents."

International relations

Place new order. It's free, fast and safe

Our customers say

Jeff Curtis

Ian McGregor

Shannon Williams