Brexit - Pros and Cons of leaving the EU

Author: Iloka Benneth Chiemelie
Published: 2nd April 2017

1.  Discuss the significance of IT

The importance of information technology is vast and across industries as discussed below

·         Business management (Quinonez, 2014) – in the modern business world, fast decision making process does influence chances of company to survive. IT makes the process of business management more effective and efficient because it allow companies to gather, process and retain essential information that are used to foster decision making process.

·         Education (Quinonez, 2014) – IT is also important in the academic world as teachers and students can now sources information easily via established academic database. Additionally, it allows for distance learning; which increases overall literacy level across the globe.

·         Finance and Commerce (Quinonez, 2014) – IT is also crucial in the finance and commerce world. It allows companies to transact online and on-time across the globe. With the aid of a website, a company can sale its products, get paid via PAYPAL and deliver the products to the customer with the aid of DHL.

·         Healthcare (Quinonez, 2014) – Gone are the days that patients are mandated to visit a doctor in order to get treatment. With advancement in IT, patients can now get instant checkup via phone call or hospital support systems. Thus, IT improves overall healthcare system.

·         Security (Quinonez, 2014)– IT has also improved security networks across the globe. With the aid of CCVTV, corporations can now monitor all movement with its sphere and ensure that both the company and staffs are not exposed to any form of security breach. Additionally, it offers individual security across homes and other personal properties.

2.  Discuss the significance of IT to UK business organisations

·         Enhanced decision making (Butt, 2015) – IT offers UK businesses the advantage of enhanced decision making process by providing them with accurate and speedy information. Thus, it ensure that business process is made more effective and efficient.

·         Marketing and business growth (Butt, 2015) – With the aid of IT, businesses in UK can internationalize their brands and make sales across continents without going through the huddle of having to establish branches in those countries. Thus, it improves exports and sales for the company, as well UK’s GDP.

·         Customer support and satisfaction (Butt, 2015) – IT allows businesses to maintain 24/7 customer service networks. Through such opportunity, businesses in the UK can make higher sales by connecting with customers at the right time. Additionally, it enhances overall brand loyalty and repurchase intention with a resulting positive effect on overall performance of the company.

·         Resource management (Butt, 2015) – With the aid of IT, businesses in the can automate complex problems in relation to information technology as they now have access to user friendly solutions. For instance, they can share information with other corporations via Google Docs or store vital corporate details in iCloud. Thus, IT enhances overall management of resources.

·         Outsourcing (Butt, 2015) – Besides the opportunity of exporting finished goods, IT allows companies to import both raw materials and human resources at a cheaper cost. With the aid of IT, companies in UK can now compare prices and purchase from “best fit” suppliers irrespective of their location across the globe.

3.  Analyse the impact of global factors on UK business organisations

·         Political factors (Dudovskiy, 2013) - International trade unions such as WTO and higher level of global political stability helps ease internationalization of UK corporations. Issues such as terrorism and political instability does have negative effects on performance of UK businesses across the globe.

·         Economic factor (Dudovskiy, 2013) – Advanced economic policies have helped UK corporations to increase sales and productivity by offering their products and services across the globe. Globalization of economies also leave UK corporations at high risk due to redundancy effect. This was exemplified with the case of 2008 global recession.

·         Sociocultural factors (Dudovskiy, 2013) – The world is transforming to a global community, which allows corporations to segment their products and services across similar markets found across the globe. Differences in cultural value means that UK products are not welcome across certain parts of the world.

·         Technological factors (Dudovskiy, 2013) – UK corporations have access to advanced technologies and it allows them to products highly sophisticated products that are valued across the globe. However, these advanced technologies also require higher maintenance cost and it can have negative impact on overall competitiveness as they are forced to sell at higher price.

·         Legal Factors (Dudovskiy, 2013) – UK corporations are protected across the world with the aid of international laws such as WTO codes of business operations. However, presence across the globe also means that they are exposed varied legal consequences in the course of running their businesses

·         Ecological factors (Dudovskiy, 2013) – Globalization allows UK corporations to reduce overall impact of business operations on the countries environment; enhancing sustainability in the process as the non-environmental friendly functions can be transferred to countries. However, internationalization increases negative ecological impacts such as higher emissions from cargo planes.

4.  List the members of the EU

·         Austria (1995)

·         Belgium (1958)

·         Bulgaria (2007)

·         Croatia (2013)

·         Cyprus (2004)

·         Czech Republic (2004)

·         Denmark (1973)

·         Estonia (2004)

·         Finland (1995)

·         France (1958)

·         Germany (1958)

·         Greece (1981)

·         Hungary (2004)

·         Ireland (1973)

·         Italy (1958)

·         Latvia (2004)

·         Lithuania (2004)

·         Luxembourg (1958)

·         Malta (2004)

·         Netherlands (1958)

·         Poland (2004)

·         Portugal (1986)

·         Romania (2007)

·         Slovakia (2004)

·         Slovenia (2004)

·         Spain (1986)

·         Sweden (1995)

·         United Kingdom (1973) (European Union, n.d.)

5.  List four examples of the single European market in action

·         Free movement of goods, persons, services and capital between member states;

·         The approximation of relevant laws, regulations and administrative provisions between member states;

·         EU-wide competition policy, administered by the Commission;

·         A system of Common External Tariffs (CET – also know as the Common Customs Tariff) (Politics.co.uk, n.d.)

6.  Do you think a single currency benefits business?

No.

7.  For and against EMU

·         For – It helps increase GDP of countries with poor currency as their exchange rate is increase by using the Euro (History Learning Site, n.d.).

·         Against – it reduces the GDP of countries with higher currencies than the euro (e.g. UK) as their exchange rate is reduced (History Learning Site, n.d.).

8.  What are the advantages and disadvantages for the UK, as a country, in accepting a single currency?

·         Advantages - it reduces issues of currency instability and exchange rates (BBC News, 1997).

·         Disadvantages – it reduces the GDP of the country and overall net worth of its citizens as they will have to accept a fixed lower euro (BBC News, 1997).

9.  Name few policies of EU

·         Agriculture, fisheries and foods - CAP, rural development, Aquaculture, CFP, food safety

·         Business - Industry sectors, enterprise policies, SME's, Single Market, free movement, competitiveness, competition

·         Climate action - Climate change, Energy for a changing world

·         Cross-cutting policies - Financial and economic crisis, Europe 2020 – a new economic strategy, better regulation, sustainable development, multilingualism

·         Culture, education and youth - Audiovisual and media, culture, education and training, sport, youth

·         Economy, finance and tax - Financial Services, Budget, Competition, Customs, Economy, Fight against fraud, Taxation

·         Employment and social rights - Employment, social affairs and equal opportunities

·         Energy and natural resources - Energy, Trans-European networks (European Commission, n.d.).

10.  Brexit - the people and arguments for and   against / UK should remain or leave EU?

·         How other nations will see Britain if we leave Europe – Some will see it as powerful as it will be under full control of its army and law. Other might see it as weak before EU defence and law offers more power (e.g. France, Germany, Spain etc. are part of the EU defence system) (Riley-Smith, 2016).

·         Immigration – If UK stays, it will not be able to control immigration as all citizens of EU member states and citizens of non-EU member states with Schengen visa can enter the UK. Leaving the EU will give UK full control over its border (Riley-Smith, 2016).

·         Britain in the world: a question of reputation and influence – As one of the founding nations, it will have negative impact on reputation because they will their decision to leave as weak (Riley-Smith, 2016).

·         Trade and economy: can Britain perform better in the EU or outside it? - The EU does not trade major emerging markets such as China and India. Leaving the EU will allow Britain to trade with these major markets and higher currency ensure higher purchasing power (Riley-Smith, 2016).

·         EU intervention and interference, and the concept of the EU – In the case of economic and security issues, the EU finance and defence system can provide needed support (for instance the Greece Bailout). Leaving the EU means that Britain will not be able to benefit from such interventions (Riley-Smith, 2016).

·         Jobs, mobility and employment – EU policies allows member states to settle and work in any desired location. This reduces employment opportunities for local British workforce. Leaving the EU will stop such and increase employment opportunities for its citizens. However, British citizens working in EU countries will also be affected (Riley-Smith, 2016).

·         Brexit and business – Leaving the EU means internationalized British corporations will have to deal with EU laws as non-EU states. It will have negative impact as all benefits associated with being EU member state will be withdrawn (Riley-Smith, 2016).

·         Healthcare and Brexit – All health benefits as EU member state will be cancelled and Britain will have to take care of its own health system. However, EU member states that take advantage of British advanced health system will have to pay for if Britain leaves, which will improve the country’s GDP (Riley-Smith, 2016).

·         The cost of belonging to the EU – As EU member state, Brittan needs to incur a number of policy-based costs. By leaving the EU, the country can pump these funds into its GDP and use it to serve its citizens (Riley-Smith, 2016).

·         The consequences of leaving the EU – If Britain leave the EU, it will have to forfeit all associated benefits as a member state, which will push the country to be independent and handle all of its national issues without the help the EU (Riley-Smith, 2016).

·         Collateral consequences - the future of the UK and Europe – All collateral agreements with the EU will be cancelled, and British citizens will have to follow existing laws across Europe (especially those waved out by being a member state of the EU) (Riley-Smith, 2016).

References

BBC News. (1997, 11 21). Pros and cons. Retrieved from BBC News: Special report: http://news.bbc.co.uk/2/hi/special_report/single_currency/25081.stm

Butt, A. A. (2015, 5 14). The Role of Information Technology in Business Success. Retrieved from LinkedIn: https://www.linkedin.com/pulse/role-information-technology-business-success-abid-afzal-butt

Dudovskiy, J. (2013, 12 11). Impact of Global Forces on UK Business Organisations. Retrieved from Research Methodology : http://research-methodology.net/impact-of-global-forces-on-uk-business-organisations/

European Commission. (n.d.). The policies. Retrieved from European Commission: http://ec.europa.eu/policies/index_en.htm

European Union. (n.d.). Member countries of the EU (year of entry). Retrieved from European Union: https://europa.eu/european-union/about-eu/countries_en

History Learning Site. (n.d.). What are the arguments for and against joining the Euro. Retrieved from History Learning Site: http://www.historylearningsite.co.uk/british-politics/what-are-the-arguments-for-and-against-joining-the-euro/

Politics.co.uk. (n.d.). European single market. Retrieved from Politics.co.uk: http://www.politics.co.uk/reference/european-single-market

Quinonez, N. (2014, 5 13). The Importance of Information Technology and Its Disadvantage. Retrieved from Udemy Blog: https://blog.udemy.com/importance-of-information-technology/

Riley-Smith, B. (2016, 6 20). Leave or Remain in the EU? The arguments for and against Brexit. Retrieved from The Telegraph News: http://www.telegraph.co.uk/news/2016/06/16/leave-or-remain-in-the-eu-the-arguments-for-and-against-brexit/