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Question: Discuss about the Companies and Financial and Legal Services. Answer: Introduction Brexit means a situation when the United Kingdom decided to come out of the European Union. This has caused many troubles in the political as well as the environment issues in that region. There was referendum, which was conducted and in theweeks following, where the media have largely focused onshort-term, immediate and pressing issues, both economic and political. There was negotiation between the UK and European Union based on which the decision to exit and there was an impact of brexit on the economy,the markets, and indeed on the financial conditionsof the region. Theory behind the trade integration After the referendum which took place in UK, the people of United Kingdom decided to exit the membership of European Union. This has caused a major impact on the political and the social environment of the Country. During Brexit, Britain has entered into trade agreement. A decision is taken whether UK will be leaving the European Union. After the globalization and liberalization which bought about a change in all over the World. The European Union being is one of the most attractive places for trade. After Brexit, the UK will face problems regarding the business operations. The UK needs to negotiate the trade and agreement with the other Countries. The financial institutes are also affected by the Brexit and it was discussed in the referendum (Baker, Ali Thrasher,2016).The decision where the EU can save the UK government from having to contribute every year. There has been an issue where there is a prediction that the UKs contribution to the EU comes in the coming years. The decision of UK to come out of European Union after the referendum which took place and the International companies have started their process for Brexit and there was a potential increase in the cost associated with the UK- EU trade. There was an increase in the price of goods, services after the Brexit. The considerations and changes include the locations; trade barriers and the supply chain management and trade between third Countries outside the UK.The impact was felt by wider a person that operates in the EU (Duff, 2017). Trade with a UK and EU company, and the strategy Trade Principle Taking an example of a non EU based Company Easy Jet and a UK based Country Switzerland. After the potential decision of exit of UK from the membership of EU, the important factor that affected was trade or business in between the Countries. The airline industry was hugely affected by the decision. Trade and commerce is most crucial for the growth and prosperity of the Country. There has been a problem to negotiate the trade deals after brexit. There has been huge loss of Easy Jet. Even though after Brexit, Easy Jet had decided to maintain the trade and business relations in the Countries and keeping its headquarters in UK. The strategies and trade principle used are: Firstly, the strategy was to join the ETFA. The UK will be allowed to access the EU market for negotiating the deals with the non EU member Countries. Secondly, the strategy is to follow a Swiss style approach to an EU relationship is followed. The Country has to use bilateral treaties in the relationship with the EU so that they are able to negotiate the trade. This will help the UK to negotiate specific agreement after maintaining some of the EU laws. Those who were in favor of exiting EU membership believed that the UK is well placed to negotiate a favorable trade arrangement management with the EU even after post-Brexit. Thirdly, the strategy is to follow the rules of World Trade Organization. This strategy may be a nuclear option and only few of the airline industry will follow. Lastly, like other European airlines, Easy Jet will regularly engage with the UK and the EU on a wide range of issues which includes the impact of Brexit on aviation industry Identify possible models of economic relations between the UK and EU-27 after the Brexit The UK Government which has now been publicly set out so that their aim for the Brexit negotiations is for the UKs future relations with the EU since it has been left out. At a high level, the UK aims to be global in all its endeavors and they cooperate with their EU neighbors. The areas which were to determine after the Brexit was as follows: Take the control of the laws: After the Brexit the UK decided to leave the European Union and they decided to manage with the Court. A new custom arrangement: In order to prioritize the trade between the goods and the services this includes the financial services between UK and the EU (Featherstone, 2016). Brexit did not contribute to the EU Budget: After Brexit there has been many issues raised and therefore there is no appropriate contribution. The European Union established a draft negotiating the goals and setting out what the negotiations management are all about which would move to the future relationship with the EU. The areas which will determine the UK EU model The four various things on which the new model will be determined .The company will depend on following: People, Capital Goods Services The United Kingdom indicated a Non EU member without the obligation of the member state. The agreement was based on and aimed for ambitious free trade and which was concluded after Brexit (Gordon, 2016). Lisbon Treaty (Article 50) provides for exit of member countries from European Union. For any country to come out of European Union, it has to negotiate a deal with EU. The deal will provide for a settlement between EU and UK. The most important focus was on the relation of UK with the members of European Union. After the globalization there began a free trade movement of capital, goods and services which helps in the belief that the market forces are unleashed and unstoppable. After this the members of the Country saw that they move towards untrammeled freedom towards a positive light. This was a protest against the career opportunities and there has been an economic model that has been taking place. There was control which was imposed so that there will be free movement of the capital and people and trade unions could have bargained for the higher pay or settle down for cheap labor which was being brought into the Country (Hellwig,2017). The opportunities and threats posed due to Brexit There will be devaluation of pound sterling and it will be volatile therefore it might affect the sale of tickets of Easy Jet There will be introduction of customs and tariffs between UK and EU countries thus it might affect the number of passenger boarding the flight There will an increase in the trade tariffs in the airlines of non EU when negotiating with the UK Limitation for higher cost for companies with the UK based companies (Torjesen, 2017). Easy Jet dealing with UK needs to deal with the trade tariffs and regulation so that there is no impact in the prices of their ticket Sovereignty: The UK does not have full control over the affairs. The UK has given the control over the decisions to the borders in exchange of the decision related to trade and security (Joshi, 2016). Reduction of terrorism: With the threats increasing the UK believe that the members of the EU have posed threats and security threats. Thus it will reduce their ability to control borders. On the positive note, Brexit has driven away fears of a US Fed rate hike which could lead to lower commodity prices and overall impact in the airline industry. The threats are as follows: There will be shrinking in the UK market: The UK is a part of the single market with no tariffs and imports. As the EU countries go to the UK, they will stick towards the rules and the regulations (McDougall, 2016). Loss of jobs: After the Brexit there will be huge loss of jobs which have been highlighted as there has been loss of jobs. There has been trade between the UK and the EU members. UKs place in the World: After Brexit since UK has been a part of EU; it has more influence on Europe which has many benefits for the UK movements. Most of the British legal migrants were coming from EU. There is this feeling which had at negative impact on UK born workers. Adding credence to local fears was the fact that since 1997, 3/4thof jobs created are taken up by EU immigrants this has a impact on the airlines. The immediate impact of Brexit is that there is a risk of aversion when it comes to investing, especially in light of possibility of other countries following suit. This will affect the FPI outflows from foreign portfolio investors. References Adler-Nissen, R., Galpin, C., Rosamond, B. (2017). Performing Brexit: How a post-Brexit world is imagined outside the UK.British Journal of Politics and International Relations management,19(3). Alhajji, A. F. (2017). OGEL Special Issue on" Brexit".Oil, Gas Energy Law Journal (OGEL),15(2). Baker, A. H., Ali, R. R., Thrasher, A. J. (2016). Impact of BREXIT on UK gene and cell therapy: the need for continued pan-European collaboration. Duff, A. (2017). Brexit: the launch of Article 50. EPC Discussion Paper, 9 February 2017. Dhingra, S., Ottaviano, G., Sampson, T., Van Reenen, J. (2016). The impact of Brexit on foreign investment in the UK.BREXIT 2016, 24. Dorling, D. (2016). Brexit: the decision of a divided country. Featherstone, M. (2016). Brexit means Brexit: On the Horror of the Other in (Neo) Liberal Britain.CTheory. Gordon, M. (2016). The UK's Sovereignty Situation: Brexit, Bewilderment and Beyond.King's Law Journal,27(3), 333-343. Hellwig, H. J. (2017). The Effects of Brexit on the Law of Companies and Financial and Legal Services in Europe: A Summary Overview.European Company and Financial Law Review,14(2), 252-268. Joshi, V. N. (2016). Brexit: Implications for India?. McDougall, D. (2016). Australia and Brexit: dj vu all over again?.The Round Table,105(5), 557-572. Murray, C. (2017). Deemed leave: A concrete plan to secure EU residents rights post-Brexit. Torjesen, I. (2017). Four in 10 European doctors may leave UK after Brexit vote, BMA survey finds.BMJ: British Medical Journal (Online),356.