Advanced Higher Business Management: Impact of UK trading with the EU

What are impacts of the UK trading with the EU?

Access to the Single Market: One of the biggest benefits of trading with the EU is that the UK has access to the Single Market, which allows for the free flow of goods, services, capital, and people between EU member states. This has been a major advantage for UK businesses, especially those in the service sector, as they can sell their products and services across the EU without any trade barriers.   Increased Competition: However, access to the Single Market also means increased competition from EU businesses. This has led to some UK companies facing difficulties as they struggle to compete with lower-priced products from EU countries.   Increased costs for businesses: After the UK left the EU, new trade barriers and customs procedures were introduced, which have increased costs for businesses that trade with the EU. This has had a negative impact on the competitiveness of UK businesses, especially those in the import-export sector.   Reduced Trade Volume: The UK's departure from the EU has also led to a reduction in the volume of trade between the two countries. This is due to the introduction of new customs procedures and trade barriers, which have made it more difficult and expensive to trade between the UK and the EU.   Impact on the Pound Sterling: The uncertainty surrounding the UK's relationship with the EU has also had an impact on the value of the pound sterling. The currency has been volatile since the Brexit vote, and this has had an impact on the cost of imports and exports, as well as on the UK's balance of trade.   Jobs and employment: The EU is the UK's largest trading partner, and trade between the two has supported millions of jobs in both countries.   Investment: The EU is also a major source of foreign investment in the UK, which has helped to finance infrastructure, research and development, and new businesses.   Consumer protection: The EU's regulations on consumer protection ensure that products and services are safe and of high quality, which provides benefits for both UK consumers and businesses.   Environmental protection: The EU has set environmental standards that apply to all member states, which have helped to improve the quality of the environment and protect wildlife.