Hi and welcome to search on Spokane. This business review blog will cover everything business. Well endeavor to bring you everything from micro/macro economics to world news, business events, finance, best practices and more.
Today we’re going to talk about current global events and how the UK’s exit from the European Union, the effects, especially as they relate to business. First we need an understanding of what the UK and EU is.
The actual name for the sovereign state that is the UK is the United Kingdom of Great Britain. So those of you who thought the UK and Great Britain were two different countries were mistaken. Although the UK is and will remain physically in Europe (because it would be silly otherwise), it’s public have voted to break economic and legal ties with the European Union (EU), as the result of a referendum.
What’s worth noting is that the UK’s decision to leave the EU needs to be officially agreed to and signed by the Prime Minister — Teresa May — the UK’s most senior official after the queen. Teresa must sign Article 50 of the Lisbon treaty in order for the UK to officially leave the EU — this is yet to be done.
In fact, the UK’s departure isn’t quite as clear cut as you may imagine. The EU and the UK will need to negotiate departure terms and how they intend to do business in the future. However, the EU will not begin negotiations with the UK until article 50 has been signed. What’s more, once the article has been signed… it may take up to 2 years for all the details to be finalized! That’s right – it’s going to take two years, from a date that hasn’t even been reached yet, for the UK to fully depart the EU from a financial, economic, and legal perspective.
The good news is that not much changes between for now. The bad news is that the financial markets arevolatile due to the uncertainty of what is to happen next. What’s worse is that there is a small chance that supporters of the stay campaign may have a legal right to challenge the decision. The risk of the final decision being disputed is small… but the mere chance of it happening is enough to cause a lot of uncertainty within the business sector… and we all know how much we don’t like uncertainty.
So what should you be doing? Well… nothing. It’s business as usual for everyone. The only thing we might add is to wear your hard hats, baton down the hatches and ride out the current turmoil — it will settle down eventually. For those of you in industries that focus on moving people… you’re probably in luck as there will be a lot of movement at companies try to reorganize and restructure their business ahead of any changes that may be made.
Is it still viable to do business with the UK? Of course it is — in fact, it always will be.