Browsing by Author "Afolasade Alayoninuo Olufayo"

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Brexit Realisation: Its Ripple Effect on Britain's Foreign Direct Investments.
(Griffith College, 2020) Afolasade Alayoninuo Olufayo
This research work sets out to study the impacts of Brexit on Foreign Direct Investors in the UK. Brexit is a portmanteau of the words Britain and exit which refers to the UK’s exit from the EU. The UK left the EU on the 31st of January after the June 2016 public vote –referendum with a 52 to 48% margin. Furthermore, the research aims to provide an evidence-based post Brexit projection for the UK economy and key government initiatives to make the economy thrive again. The dissertation conducted an extensive review of relevant literatures to provide a background understanding of major events that led to Brexit. This also helped formed the conceptual framework which served as the basis for further works into the study. The research work employed qualitative data sourced from various secondary sources. The research approach involved the use of Documentary Research Analysis composite with Thematic Analysis method of study in processing, analysing, and appraising the research outcomes. This research produced several key findings: An analysis of the number of abroad companies that invested in the UK before and after the referendum and the rate of the countries fallout from the UK especially with the top investors – US, Germany and France. These countries began to reduce their investment in the UK after the referendum as the prospect of a “no-deal Brexit” repeatedly sank sterling and further showed that the U.K. already suffers from Brexit. Similarly, the thematic analysis revealed that the implications on FDIs included uncertainty, fear, risk-ready, negative and positive reactions to Brexit. Thus, the economy has slowed, and many businesses have moved their headquarters to the EU. In conclusion, the research work revealed that the impacts of Brexit on FDIs in the UK will continue to evolve in the post Brexit era. Hence, a key policy priority for the UK government is to plan towards a sound management of the macroeconomic performance indices in such a manner as to enhance keeping borrowing costs at reasonable levels as if the UK was still part of the EU. For instance, the findings of this research work can be utilized by the UK government to develop targeted interventions such as tax reduction incentives aimed at attracting new investors and initiatives to encourage any foreign EU corporate entity that chooses to remain in the UK. That the UK is exiting the EU is an auspicious opportunity to learn a few new things about international relations with its attendant legal implications as it affects international trade, which is central and pivotal for future research.