The UK Prime Minister, Theresa May, indicates that she plans to leave the EU with a definite control of the immigration from Europe, which force Britain to lose its current access to the European Union single market. Although May is speaking positively about her efforts to make UK companies have a bright future.
The majority of the UK businesses is small and medium businesses, and these small and medium businesses produce about half of the overall UK economic output. Some of these small businesses are operating in a closed economy, which means May's Brexit plan will only indirectly influence their business performances from the macroeconomic side. However, some businesses have many business activities with the rest of Europe, including the tourism sector. Most of these businesses will not be unhappy about losing the access to the European single market, some may be even unhappy about more restricted immigration regulation, as they could employ cheaper labours. Large businesses have their business activities around the world, the UK has been many these multinational companies' Europe head offices for decades. After Britain officially leaves the European Union, some companies may still locate their Europe head offices in Britain. However, some will move their head offices to the European continent. I think that the service sector may be more likely to stay in the UK; while the secondary sector may be more likely to choose to leave the UK, as their productions involves regular imports and exports. As the UK has a larger service sector than other sectors in terms of employment, Brexit may not hit the UK labour market extraordinarily, as the majority of the jobs will be kept in the UK, especially when the market has been confident about the world economy in the near future and the market confidence level has been relatively high at the moment.
Overall, if May and her cabinet can make the deal very fast, the UK economy will not be hit significantly as the market is still confident.
No comments:
Post a Comment