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SWOT analysis for the UKs decision to Brexit

The SWOT analysis for evaluating the British decision to leave the EU is based on four
factors; strength, weakness, opportunity, and threat. The below analysis is based on the opinions
of both pro-Brexit and pro-EU campaigners. These opinions are categorized based on the SWOT
four factors to identify if the decision to leave is right or wrong based on a balanced analysis.
Each reason to stay or leave was numbered in order to have an understanding of the reasons
highlighted under each factor. However, the number cannot be considered an indicator or
reflector to the final decision that should be taken because some reasons are more powerful than
others. For example, there is a general agreement that the economic and security-related reasons
have high importance when compared with other reasons such as British tourism in Europe.
The factors below are based on a number of resources that are listed at the end of this
article. Your feedback and comments about any further factors that can be listed in their analysis
can be added in the discussion area below:

A. Strength
Below are the suggested strengths of the Brexit decision:
1- Release restrictions on SMEs: Small and medium enterprises (SMEs) did not receive many
benefits from membership of the EU, yet they faced restrictions related to the trade
regulations between EU member countries. By exiting the EU, SMEs will be able to release
some of these regulations which can lead to positive impact on this important part of the
2- Sovereignty: Being part of the EU, the UK does not have full control over its own borders
and affairs. The UK had given part of its control over the decisions related to the borders in
exchange for the trade and other security benefits as one of the EU members. While the UK
is still bounded by the membership of Nato, the UN, and the World Trade Organization,
leaving the EU will contribute to gaining more control over the UKs own sovereignty.
3- More jobs and housing: Currently, there are 1.7m European and 2.93m International workers
in the UK, and this increasing number of immigrants led to difficulties relating to housing
and service provision. Although immigration will not be cut after Brexit, the UK government
will have control over its own borders and immigration policy.
4- Reduce terrorism: With increasing security threats, the Leave campaigners believe that
staying in the EU would keep the door open for terrorism and security threats, and would
reduce the ability to control borders and check people.

B. Weakness
Below are the suggested weaknesses of the Brexit decision
1- Shrink the UK market: as an EU member, the UK is part of the single market in which no
tariffs are applied to imports and exports between the member states. As 50 percent of the
UKs exports go to EU countries, this has given UK a say over the trading rules and
regulations. Leaving the EU will contribute to shrinking the UK market and reduce its
negotiating power as it will leave its powerful seat at the EU members table.
2- Reduce the flexible movement in EU countries: Under the EU umbrella, both academic and
industry talent were able to move freely between EE countries, which has had a positive
impact on the research and innovation in UK. This has allowed the UK to solidify its position
as one of the top leading countries in the field of innovation. In a survey conducted by the
Design Week magazines, 98 percent of the designers have voted to remain in the EU driven
by the fear of recession, limited access to EU clients, and freedom of movement for talents.
3- Drop in Tax revenues: As 50% of UK trade is exported to EU countries, British exit will have
a significant impact on the tax revenues as they will shrink unless other markets are opened
or the UK keeps its position as a member in the open trade agreement, the European
Economic Area.
4- Loss of Jobs: In a comparison on TheWeek, the jobs issue has been highlighted as currently
there are three millions job that may be lost if UK leaves the EU. These jobs are related to the
trade between the UK and EU. While the whole number may not suffer unemployment with
Brexit, many jobs will be affected due to the regulations related to visa and immigration laws
between countries.
5- Finding talented workers: In an article by Professor Adrian Favell in the London School of
Economics, he highlighted that the UK is one of the countries who benefit from the free
movement of labor in the EU. Leaving the EU will shrink the number of candidates which
companies can choose from.
6- UKs place in the World: Remain campaigners think that being part of the EU contributed to
the UK to having more influence in Europe which can bring more benefits for the UK in
comparison to its position outside of the EU.
7- Access to European countries: As part of the EU, Britons may live, work and stay in any of
the EU countries. While English families may find university tuitions are expensive in UK,
they can travel to other countries to get their degrees for lower cost (this does not apply in
Scotland; the education and funding systems in Scotland are different from England). The
British can also travel for tourism and trips around Europe with less cost and effort when
compared to other countries outside the EU.

C. Opportunities
Below are the suggested opportunities of the Brexit decision
1- Cost-saving: As a member in the EU, the UK contributed with GBP 13bn for the EU and
received GBP 4.5bn worth spending. This means that the net contribution is GBP 8.5bn,
which is 7 percent of the government spending on the NHS each year according to the Full
2- UK place in the World: In contrast to the Remain campaigners belief, Britons who support
Brexit believe that leaving the EU will help the UK to reestablish itself as one of the world
leaders and an independent nation. Those supporting Britains continued membership of the
EU believe this point is a disadvantage which is highlighted in the Weakness below.
D. Threats
Below are the suggested threats of the Brexit decision:
1- This has never happened before: A few hours following the referendum declared the British
peoples decision to leave the EU, stock markets were dramatically affected as British banks
were hit by a $130bn loss in the Friday trading following the referendum. The British pound
sank as low as $1.35, a 10 percent drop in its value and the lowest level since 1985. No other
country has left the EU and fear of recession has hit the market confidence.
2- Reduce the attraction of the UK market: One of the attractive factors in the UK economy is
being part of the EU. So, companies such as Nissan can build its factory in UK and export
cars to all the EU without paying any tariffs. After the Brexit, the British economy may lose
this advantage.

From my personal perspective, the Brexit has indicated many Weakness and Threat
points in relation to the economy, which is considered a major factor that should be considered
wisely when making such a decision. The above factors are based on our short-term analysis for
the Brexit and it concludes that the Brexit decision was not a proper one to take. However, the
British people have a long history of historical decisions and this decision can be one of these
decisions which we need to observe in the following years and decades.

E. Resources
The below resources were used to build the above SWOT analysis:
Brexit worse on GBP than 2008 financial crisis
The UK has been one of the main beneficiaries from free movement of labour in the EU
EU referendum pros and cons: Should Britain vote to leave Europe?
What are the pros and cons of Britain exiting/staying in the EU?
Brexit pros and cons: should Britain stay in the EU?
Brett: The pros and cons
BFC: Fashion Votes To Remain In EU
EU referendum: How would a Brexit affect the design industry?