It feels like we have been talking about it forever, but Brexit, after officially occurring a little more than a year ago on January 31 2020, is now in full effect. The growing pains of a volatile shift in political and economic policy are now being felt by British companies. According to an article by Richard Partington of The Guardian, about half of companies exporting back to the European Union are having difficulties due to new border checks and extra paperwork. The British Chambers of Commerce (BCC) found that 49% of 470 UK firms are experiencing extreme issues with trade across EU borders. A major lobbying group in the UK urged the country to negotiate with the EU due to these cross-border transactions causing companies to face extra costs and experiencing delays between the British Isles and the European Continent due to new restrictions that companies have to figure out if they apply to them or not. The BCC survey out of 1,000 firms found that only 10% found the shift in export regulations has been easy. Boris Johnson considers these “teething problems” that firms will have to adapt to and become accustomed to in the post-Brexit world. An AEV group that is a Merseyside-based manufacturer is having so many issues that the firm is reducing operations in Great Britain and investing more heavily in the EU.
This struggle UK firms are facing is a product of globalization and the reverberations of a large-scale global economy. Because of the intertwinedness that national economies have created in the post-World War II world, countries have been able to utilize economically-productive elements like free trade zones, of which the EU is, to their benefit. The recent backlash of globalization all over the world has motivated movements like Brexit to take place and reverse much of the progress that countries have made decades prior. In Global Corporate Citizenship, we must learn how the global economy functions and how independent economies and governments interact in order to comprehend the complex world we live in.
Whether it will be economically successful for Great Britain in the long-run is yet to be seen. At the moment it appears to be lacking the economic thrust that was expected by Brexit voters.