Full references of media articles in bibliography
Article one: Multinationals warn of job cuts and lower profits after Brexit vote
B) Ruddick, Graham, (2016), ‘Multinationals warn of job cuts and lower profits after Brexit vote’, The Guardian, 24/06/2016, https://www.theguardian.com/politics/2016/jun/24/brexit-vote-business-leaders-call-for-urgent-action-to-shore-up-uk-economy. Found by searching “Brexit and international corporations” in <https://www.theguardian.com/international> search engine.
C) Many jobs are in danger due to the Brexit referendum mostly in multinational companies which lead to a review in their investments in the UK. The main fear is the devaluation of the Pound against the Dollar, leading to a higher cost of imported goods in Britain and a loss of profit and amount of sales. Even though companies have an optimistic mindset and hope for the best, they warned to cut off a lot of jobs. The most affected are the financial and manufacturing sector.
D)‘The Guardian’ is a British worldwide well known newspaper that is not only very reliable but also very frequently used. Since ‘Brexit’ is an event happening in the UK, and the newspaper is British, it is more likely to be accurate and reliable. Also, it mentions some negative aspects of how Brexit affects multinational corporations, which suits our research question.
Article two: ‘Significant’ risk to UK firms if passporting rights lost after Brexit
B) Treaner Jill (2016), “‘Significant’ risk to UK firms if passporting rights lost after Brexit”, The Guardian, Tuesday 20 September, https://www.theguardian.com/politics/2016/sep/20/passporting-rights-brexit-uk-firms-fca-eu. Found by searching “consequences of Brexit on firms, The Guardian” in the ‘Google’ search engine.
C) This article reveals the consequences of Brexit over corporate passports which allow UK authorized firms, banks and fund managers to conduct business in the other EU member countries. Around 5500 UK firms rely on the passporting while over 8000 firms from the EU do business in Britain. The impact of Britain leaving the EU has a huge impact on both, British and non-British companies, since the rights and regulations for the corporations change and complicates the whole international business process by the UK not being part anymore of at least the EEA (European Economic Area).
D) We chose this article, not only because it is published by “The Guardian” ehich is a reliable source (as well as article one), but also because the main topic covered (passporting) is very important for many firms to do business in the EU, which answers to some extent our research question. Thus, this article depicts a major downside of Brexit over companies. Furthermore, the newspaper article has very relevant and trustworthy sources to give precise numbers and explanations. In addition, it is a recent article which makes the whole information more reliable and accurate.
Article three: The economy since the Brexit referendum – Fact and fiction
B) Unknown Author, (2016), “Fact and fiction”, 03/09/2016, The Economist. http://www.economist.com/news/britain/21706348-dire-prophecies-doom-have-not-come-trueyet-economy-slowing-fact-and-fiction. Found by searching ‘The economy since Brexit’ on the “Google” search engine.
C) This article talks about the facts and fiction of ‘Brexit’.The pound has stabilized after the ‘Brexit’ referendum and companies have not fled the UK yet. According to the article, this is because the negotiations concerning Brexit will not start until the beginning of 2017. Business credit have decreased since people have been holding back from investing. This has a negative impact on productivity and therefore on wages. Even though the wages decrease, the amount of jobs increases. In addition, the amount of exports increased since Brexit because of the pound devaluation, decreasing at the same time the imports sales because the products prices increased. The UK chancellor stated that to keep off a recession, he will have to loosen up the current
fiscal plans.
D) We chose this article to give an overview over how the economy in the UK is doing in general after the Brexit referendum. In addition, we believe this is a good article since “The Economist” is a very reliable source of information about the current economy.
Article four: What’s Next for Business After ‘Brexit’?
B) Rao, Phrasant S., (2016), “What’s next for business after ‘Brexit’?, 15/09/2016, The New York Times, http://www.nytimes.com/interactive/2016/business/international/brexit-latest-fallout-tracker.html?_r=0. Found by searching on the Google engine: “Brexit and companies, The New York
Times”
C) This article brings to light the positive consequences of Brexit over UK and international firms. Indeed, the article explains that the consequences are not that dramatic as people believe, and that on the contrary, Brexit has had a positive impact over companies such as newspaper companies or firms that export and do business overseas. Companies abroad have actually invested even more in the UK. There are many investments in the manufacturing and infrastructure projects.
D) One of the main reasons that made us choose this article was that it approached ‘Brexit’ in a more optimistic way, highlighting the positive aspects that have to be considered too. This article gives us reliable information due to its source (The New York Times) and respond to our research question from different perspectives; the positive and negative impacts. This information can however only be used in certain business areas since the article specifies certain areas only in which ‘Brexit’ impacts in a positive way.
2. Scientific article
Article five: The impact of Brexit on foreign investment in the UK?
B) Swati Dhingra, Gianmarco Ottaviano, Thomas Sampson and John Van Reenen, “The impact of Brexit on foreign investment in the UK”, April 2016, Centre for Economic Performance London School of Economics and Political Science, http://cep.lse.ac.uk/pubs/download/brexit03v2.pdf
Found by searching on the Google scholar engine: “brexit and consequences on companies”
C) Foreign Direct Investment (FDI) has a very positive impact over a country. Indeed, it raises the national productivity and firms bring with them new technologies and management skills. Also, this is very positive for other companies in the country as FDI creates more competition and so motivates them. The UK is very attractive for foreign investors because it allows easy access to the EU’s Single Market. However, after Brexit, there will be higher trade costs with the EU and so this would have a significant negative impact on FDI. There will be less FDI in the country for competitive reasons.
D) We chose this article because it reveals the consequence of Brexit on Foreign investment and so a direct and important impact on UK and international firms Also it is an interesting scientific article because it was published by a British University which allows us to see Brexit not from the eyes of an international source but a British one.
Article six: What’s Next for Business After ‘Brexit’?
B) Swati Dhingra, Gianmarco Ottaviano, Thomas Sampson and John Van Reenen, “The consequences of Brexit for UK trade and living standards”, March 2016, Centre for Economic Performance London School of Economics and Political Science,
http://eprints.lse.ac.uk/66144/1/__lse.ac.uk_storage_LIBRARY_Secondary_libfile_shared_repository_Content_LSE%20BrexitVote%20blog_brexit02.pdf
Found by searching on the Google scholar engine: “brexit and consequences on companies”
C) The European Union (EU) is the UK’s largest trade partner. Consequently, “leaving the EU would lower trade between the UK and the EU because of higher tariff and non-tariff barriers to trade”. Actually, Brexit will not only make Britain lose income but all EU countries as well as trade with Britain will be more costly. Furthermore, because the UK is no longer part of the EU, it will no longer be able to benefit from the future EU trade deals. Thus, UK companies will be in a greater disadvantage with this competition.
D) We chose this article because it is a good bridge with the 5th article as it creats a link between the impact of Brexit over FDI and Brexit over trading.
Scientific article 1: International business and entrepreneurship implications of brexit.
B) INTERNATIONAL BUSINESS AND ENTREPRENEURSHIP IMPLICATONS OF BREXIT, British Journal of Management, forthcoming Douglas J. Cumming and Shaker A. Zahra, July 2016
Found by searching on the Google scholar engine: ‘Brexit business’.
C) The future of the relationship between the UK and both the EU and North America after brexit is hard to predict. In the past years the relationship between larger companies and startups has grown, as well as the interconnectedness of the global economy, brexit can affect this. The decline of the value of the pound relative to the US dollar can harm global business, this will most likely be felt by young and smaller companies in UK or exporting to them. There are also some multinationals who are concerned about the declining profit margins causing that they are reconsidering the attractiveness of the UK as a place for business. There are also predictions that Brexit will hurt entrepreneurship in the UK. Brexit is also expected to have consequences for new startups and their funding.
D) We chose this article because it talks about what the effect of brexit on companies can be. Furthermore Google scholar is a trustworthy place to find scientific articles.
Scientific article 2:
B) Don’t believe the Brexit prophecies of economic doom. We focus on market reactions part of the article.
June 27, 2016 5.32pm BST, Senior Lecturer in Finance, University of Stirling
http://storre.stir.ac.uk/bitstream/1893/24094/1/Tabner-Conversation-2016.pdf
Found by searching on the Google scholar engine: Brexit economic
C) This article talks about how brexit isn’t as negative as many people think, because when you compare the current level of volatility with other shocks, market conditions are not that bad as they seemed at first sight. Also the fall of the fall of the pound is not that bad, since fall aggravated because of the assumption that Remain would win in the days before the brexit vote. And a lower pound is positive for companies that add most of the value to their products inside the UK or if the companies sell their product on international markets. Companies that rely on imports on the other hand will hardest hit in short term. So there will be winners and losers, but the indexes for volatility are already low in comparison to February this year.
D) We chose this article because it sheds light on the more positive sight of brexit for companies. The source is also reliable since it is written by a senior lecturer from the University of Sterling.