The United Kingdom European Union membership referendum, which took place on June 23, 2016, gave the electorate a chance to decide whether or not the UK should remain a member of the European Union (EU). The results showed that almost 52% of the voters supported leaving the EU. The UK's membership in the EU had been a topic of debate for a long time since it joined in 1973, and in 1975, a referendum was held, which resulted in about 67% of the votes supporting it to remain a member. However, Brexit did not formally occur until January 31, 2020, because several policies and negotiations needed to be agreed upon between the UK and the EU, and a transition period was needed to reach different trade deals. In March 2017, Theresa May, the UK's Prime Minister at the time, invoked Article 50, which initiated the UK's withdrawal process.

II. Analysis

a. Business Impact

The Brexit referendum had many negative impacts on the UK's economy. David Cameron, then UK's Prime Minister, immediately resigned after the Brexit referendum, which led to an unexpected end to his long-term premier position. Although he campaigned hard to build a strong relationship between the UK and the EU, his effort did not yield much impact. According to Stewart et al. (2016), Cameron called the British public's decision "an act of economic self-harm." In addition to Cameron's resignation, the UK's economy was adversely affected by its withdrawal from the EU. As Nardelli (2018) illustrated, a government assessment titled "EU Exit Analysis" predicted a 2% to 8% lower growth over the next 15 years along with the UK's withdrawal from the EU.

Furthermore, economists said that the UK's withdrawal had caused the country to produce £18 billion less a year because of its hit on the national income. Companies in the UK had to postpone their plans to invest in certain projects a year after the Brexit referendum due to uncertainty about the country's future trading relation with the EU and the rest of the world. This led to an 11.8% decrease in the purchases of transport equipment, limiting the contribution investment made towards economic growth. Additionally, Brexit had a detrimental effect on retailers, such as John Lewis, who heavily relied on middle classes as main purchasers. Although the company had more sales in the last two quarters of 2017 compared to the previous year, there was still a decreased amount of goods purchased by customers due to the increased inflation rate.

Brexit also had a negative impact on the UK's employment rate in 2017, and this effect worsened in 2018. Bloom et al. (2018) suggested that Brexit caused a decline in employment rates by 1.5% a year after the referendum.

b. PR response

Overall, Brexit had negative impacts on the UK's economy, employment rate, and several businesses. The response from PR included a series of efforts to manage the effects of Brexit. PR strategies were used widely, from advertising campaigns to extensive media coverage, to reassure and guide public opinion and perception towards the effects of Brexit. The UK government had to make efforts to tackle these negative impacts and reassure the public that their interests were being taken into consideration.

According to a report by Szucko (2019), the 27-state European Council President at the time, Donald Tusk, published a White Paper addressing the concerns of unhappy citizens in Europe and their expectations for a better future. The political reflection on the future of the EU began as a response to this issue.

On the other hand, David Cameron’s resignation from parliament post the Brexit vote can be seen as the British government’s institutional response. Through his resignation speech on June 24, 2016, Cameron expressed disappointment over the people’s decision to leave the EU and stated that fresh leadership was needed to head towards a new path.

Meanwhile, the public perception towards the withdrawal of the U.K. from the EU had several distinct features. As per Curtice (2021), most voters who voted to leave the EU did not regret their choice. However, researchers found that a narrow difference existed between the two results, indicating an increasing number of people who thought otherwise. Survey results also indicated that non-voters played a crucial role in the voting process, showing that had they participated, the result might have been different, and the U.K. would not have left the EU.

Additionally, the Brexit vote led to the separation of Scotland from the U.K. as most Scottish people voted to stay in the EU. The Brexit vote indirectly resulted in increased support for Scottish independence. Furthermore, four years after the referendum, there was a decrease in the number of people who supported limiting the freedom of movement. This suggests that the public began to review their decision to leave the EU.

Moreover, the Brexit vote had a significant impact on the U.K.’s politics and foreign policy. The U.K. now has the liberty to negotiate deals with countries such as Australia, New Zealand, and Canada. Furthermore, the U.K. shifted its focus towards promoting freedoms such as economic and political participation and supporting human rights.

Finally, despite its withdrawal from the EU, the U.K. remained obligated towards international organizations such as NATO and the UN, contributing troops and funds to countries affected by violence.

III. Insights

The impact of the Brexit vote had far-reaching implications, and the class learnings helped shed light on the real-world consequences.

For example, Cameron's decision to leave demonstrated how top executives in corporations should conduct themselves. Despite his personal view, which was to stay in the EU, Cameron realized he couldn't provide direction that conflicted with his beliefs, and thus resigned.

Likewise, the British government's decision to support protestors in Hong Kong illustrated their commitment to Corporate Social Responsibility (CSR). Although not obligated to interfere in Hong Kong's affairs with China, Britain chose to do so in order to defend human rights and establish a reputation for itself as a responsible member of the international community. By building close relationships with other countries and earning their support, Britain could negotiate favorable trade agreements that would ultimately benefit its economy.

Furthermore, the decrease in support for ending the freedom of movement between Britain and the EU signaled a possible recession for the country. One of the hallmarks of a recession is declining consumer spending, such as a drop in car sales and housing purchases. The restriction on movement between the UK and the EU contributed to this decline, as it became more difficult for people to travel between countries.

As the class learned, the EU played a substantial role in the global economy, and leaving the Union hampered Britain's prospects for sustained prosperity. Despite this, the UK can still take steps to revive its economy and establish itself as a powerhouse in the post-Brexit era.

In conclusion, the ramifications of the Brexit vote continue to influence the country's economy today. Many Britons now believe that remaining in the EU would have been the better choice, given the adverse impact on their national economy. Moving forward, it's vital for the country to find ways to strengthen its economy and improve its reputation on the global stage, given the current circumstances.

Works Cited

Banda, P. (2021, March 8). The United Kingdom's foreign policy Post-Brexit and beyond. Diplomatist. Retrieved March 10, 2022, from https://diplomatist.com/2021/03/08/the-united-kingdoms-foreign-policy-post-brexit-and-beyond/

BBC. (n.d.). EU referendum results. BBC News. Retrieved March 10, 2022, from https://www.bbc.co.uk/news/politics/eu_referendum/results

Bloom, N., Chen, S., & Mizen, P. (n.d.). Rising Brexit uncertainty has reduced investment and employment. VOX, CEPR Policy Portal. Retrieved March 10, 2022, from https://voxeu.org/article/rising-brexit-uncertainty-has-reduced-investment-and-employment

Curtice, J. (2020, January 31). Public attitudes and preferences on Brexit Day. What UK Thinks: EU. Retrieved March 10, 2022, from https://whatukthinks.org/eu/public-attitudes-and-preferences-on-brexit-day/

Curtice, J. (2021, June 15). Public attitudes on Brexit: Past, present and future. UK in a changing Europe. Retrieved March 10, 2022, from https://ukandeu.ac.uk/public-attitudes-brexit/

Giles, C. (2017, December 18). The real price of Brexit begins to emerge. Financial Times. Retrieved March 10, 2022, from https://www.ft.com/content/e3b29230-db5f-11e7-a039-c64b1c09b482

Nardelli, A. (2018, January 29). The government's own Brexit Analysis says the UK will be worse off in every scenario outside the EU. BuzzFeed. Retrieved March 10, 2022, from https://www.buzzfeed.com/albertonardelli/the-governments-own-brexit-analysis-says-the-uk-will-be

In an article published on EUROPP by Szucko, the author delves into the institutional response of the European Union (EU) to the Brexit vote. The article was written on July 30, 2019, and remains a relevant source of information up to this day.

Szucko highlights the various changes that occurred within the EU institutions, as a result of the UK's decision to leave the bloc. The author demonstrates how Brexit has challenged the integrity of the EU and forced the organization to re-evaluate its position and direction.

Furthermore, the article explores how the EU has responded to Brexit as an economic, social, and political issue. The EU has implemented a series of policies and strategies to address the consequences of Brexit, both for the UK and for the remaining member states.

Szucko also analyzes the implications of Brexit on the EU's internal and external affairs. The author examines how the EU has restructured its decision-making process and policy priorities to maintain relevance and influence in the global arena.

Overall, Szucko's article sheds light on the EU's institutional response to Brexit and how the organization has evolved since the referendum. The author provides valuable insights into the challenges and opportunities that Brexit has presented for the EU and its future outlook.