Identify and critically evaluate the social and psychological impact of increased use of the smart phone by young people.

Assignment Brief

MODULE TITLE:  Business Environment

The Learning Outcomes for Business Environment are as follows:

Knowledge & Understanding

Students will be able to demonstrate knowledge of how PEST (the political, economic, social and technological environment) influences business behaviour. Knowledge of PEST will be reinforced by application to real life events. Students will be made aware of how PEST contributes to the continuous development of personal learning. To reinforce students’ understanding and application of PEST through engagement with deeper learning techniques.

Cognitive & Intellectual Skills

Students will be able to employ arguments which are balanced, logical and supported by contemporary theory and up-to-date data.

Practical & Professional Skills

Students will be able to innovatively apply their knowledge and logical skills to a range of complex situations for a range of scenarios and cases.

Key Transferable Skills

Students will be able to prepare written reports, and presentations.

Sample Answer

The Economic Implications of Britain’s Decision to Leave the European Union (Brexit)

Introduction

The decision of the United Kingdom (UK) to leave the European Union (EU) in 2016, known as Brexit, was a historic and controversial event. The referendum, where 52% of voters chose to leave, triggered a long and complex process that officially ended on January 31st, 2020. This report critically evaluates the economic implications of Brexit, focusing on key areas such as trade, investment, labour market, inflation, and government policy. The analysis uses the PEST framework, political, economic, social, and technological environment, to structure the evaluation and links it to real-life examples and data.

Trade and Market Access

One of the most direct impacts of Brexit was on trade between the UK and EU. Before Brexit, the UK had full access to the EU Single Market and Customs Union, meaning goods, services, capital, and people could move freely. Leaving the EU meant the UK had to negotiate a new trade agreement.

The UK-EU Trade and Cooperation Agreement (TCA), signed in December 2020, allowed for tariff-free and quota-free trade on goods. However, it introduced non-tariff barriers, such as customs checks, rules of origin requirements, and regulatory paperwork. This made it harder and more expensive for UK businesses to trade with the EU.

For example, UK food and fish exports to the EU faced delays due to increased checks. According to the UK Office for National Statistics (ONS), UK exports to the EU fell by 40% in January 2021 after the transition period ended. Although trade volumes have since recovered slightly, friction remains, especially for small businesses that lack resources to handle the new bureaucracy.

Foreign Direct Investment (FDI)

The EU is the world’s largest economic bloc, and being a member helped the UK attract significant levels of foreign direct investment (FDI). Investors saw the UK as a gateway to the European market. After Brexit, this advantage was weakened.

According to data from the OECD, FDI into the UK dropped significantly after the referendum. Between 2016 and 2019, inward FDI flows decreased by over 20% compared to pre-Brexit levels. Some multinational companies, especially in automotive and finance, shifted operations or opened new offices in EU countries like the Netherlands, Ireland, and France to maintain access to the Single Market.

For example, Nissan considered moving its operations out of Sunderland, and JP Morgan moved hundreds of jobs to Paris and Frankfurt. While the UK remains a major global economy, the uncertainty around Brexit reduced its appeal as an investment destination.

Labour Market and Immigration

Brexit had major implications for immigration and the labour market. The end of free movement of people between the UK and EU led to a decline in the number of EU workers, particularly in sectors like hospitality, construction, agriculture, and healthcare.

This resulted in labour shortages. For instance, the hospitality industry struggled to find enough staff post-Brexit and post-COVID-19. Farms in the UK experienced fruit and vegetable shortages due to a lack of seasonal EU workers. The British Meat Processors Association also reported workforce gaps in 2021.

The government introduced a points-based immigration system, giving priority to high-skilled workers. However, this system made it harder for low-wage industries to fill vacancies, increasing costs and reducing productivity in some areas.

Continued...