Possible scenarios In the face of many misunderstandings between the European Union – the UK Prime Minister – the UK Parliament and the protracted negotiations, two questions arise: what are the possible scenarios and what do they mean for marketers from around the world? a) Hard Brexit The term “Hard Brexit” means the UK leaving the European Union without an agreed common position. It will probably mean: the deepening depreciation of the pound and the increase in inflation, reinstatement of customs control, creating separate legal regulations, other than on the continent, the need to have a passport when crossing the border, many well-known companies leaving the UK, including Honda, Nissan or Airbus.
Given Prime Minister Boris Johnson’s firm
Stance and readiness to leave the European Union without any deal, this scenario is currently the most likely. 6 Bank of England Governor Mark Carney puts it bluntly: A no-deal Brexit means inflation is likely to rise and economic growth to slow . 7 For the e-commerce sector, the first three effects are particularly dangerous, as they significantly Dubai Email List reduce the attractiveness of the British market in terms of the expansion of new brands and products. that have their warehouses in continental Europe and rely on sales to Great Britain. The first new barrier is the arrival of customs controls.
Their effect will not only increase the cost of export
Extend the shipping time to the United Kingdom, which in times of globalization may become a serious obstacle in reaching and convincing not only potential customers, but also keeping the current ones. Another problem – affecting both UK and Bab Directory other EU countries – is the expected increase in inflation, which will reduce the purchasing power of the pound. Inflation affects almost every area of the economy, from transportation to energy. E-commerce will find out about this painfully, especially in the field of logistics, during the renegotiation of their contracts with couriers. The last problem is legal issues.