Global Logistics in the Uk

Global Logistics

Student’s Name

Course

Instructor

Institution

City, State

Date

Global Logistics

The idea of the UK wanting to quit the EU, commonly referred to as the Brexit is one that is set to bring a lot of changes in the economic situation in the UK. This is so because the EU had a lot of impact on the trade and therefore by leaving, the state of the economy in the UK, as well as the situation in countries that depended on its trade, will go down significantly. This paper seeks to have a comprehensive review of some of the factors that are likely to affect the supply chain of a logistics company as a result of the Brexit. While doing so, the paper will focus on some of the factors that will have a direct impact on the business’s upstream/downstream supply chain. These factors that are bound for discussion in this paper include the negative implications of the Brexit on the sterling pound, the UK will be rendered as third parties in the EU and the European market, the company will have to deal with different compliance regulations and finally the fact that the company will have to deal with winning the trust and confidence of the customers and clients that will be lost once the UK government goes ahead with their plans of exiting the EU.

The first factor that is bound to impact on the supply chain of the business is the fact that the sterling pound is set to experience a very sharp fall if the Brexit takes place. By leaving the EU, the UK is set to face hard times, and this is so because there is so because the EU has played a very vital role in ensuring that the sterling pound has been sustained and its value maintained up there. While choosing to opt out of the EU, the UK assumes that the bloc does not have so much significant role to play in the economic prosperity that the country enjoys. The country’s leadership does acknowledge the fact that the trade ties of the country would deteriorate though it sticks to the fact that this will be sorted in a matter of time since it will create new bonds with other countries that are not in the bloc. This may sound like some advantage to the country, however, some important facts that the country has not looked into including the fact that the Brexit is bound to inject a very deep uncertainty into the economy of the UK. In as much as this would heal in the event of formation of new bonds with other countries, it is still uncertain if the new bonds would get to the levels the EU had set the UK at. In addition to that, there would be a period of low investment, and this puts the pound at very high risk of falling regarding value. Looking at the business in question, then it is true to say that the supply chain is set to be affected big time, in any case, the UL left the EU. First, the business returns will go down since the value of the sterling pound shall have deteriorated. In addition to that, the deterioration of the value of the pound is also likely to make the investors shun from making investments and thus the demand for services by the company or rather the business will also go down. Therefore, the first factor that is set to have a direct impact on the business’s supply chain is the fact that the Brexit would have negative implications on the sterling pound and this has been explained above.