Impact of Brexit on cross-cultural management practices

In 2016.United Kingdom opted to withdraw from the European Union (EU) leading to what is termed as BREXIT. This has a huge effect on the cross-cultural management practices .We will discuss about the effect on healthcare sector of UK, banking sector and the airline industry .The healthcare sector will be hampered the most because it will lose highly trained health care professionals as majority of them came from EU to join UK healthcare sector. Before BREXIT, UK hired doctors, nurses from various countries of the EU according to the norms and regulations of EU. When the non-EU professionals will apply to work for UK healthcare industry, they will have to follow points based system which creates difficulties. BREXIT puts on boundaries on recruitment of employees and this causes shortage of workers. The British workers who work in EU countries will face difficulties and need permission to stay in that country (Artscouncil.org.uk 2019). The healthcare sector becomes flexible to labour market which means the organisations have full freedom to hire individuals according to the demands and these individuals lose their job when the demand decreases. Also on the other hand, the organisations may have shortage of skilled staff to serve the people of UK. The people who work and live within the EU region had right to free healthcare and other such services but they will eventually lose this right post BREXIT. This right would be taken away once opted out of the EU. Post Brexit people would be required to head back to their own countries thus leading to experiencing reverse culture shock. Let us take a look at the banking sector which is a prominent sector of the EU and it is cheaper than the non EU countries. The working professionals would eventually lose their passporting rights which is a huge blow for the banking sector. Recent reports suggest that nearly 5500 organisations in UK depend on passporting for carrying out business with the EU countries. It is known that most of the banks in UK work cross-border to cater to the needs of people all across the globe. Losing the pass porting rights effects the relations of the UK banking sector with its overseas customers. The banks, thus, will suffer a huge loss towards investment and cross-border collaboration. When the laws and legislations will be amended after it, it might temporarily end the activities of the bank. Financial institutions will bear the effects of this in short term as well as in the long term. There will be trade conflict between the EU and the UK post the referendum (European Cultural Foundation 2019). There will be a negative impact on earning on the US banks which earlier used to gain meaningful revenues from the EU. There will be establishment of new regulatory standards by the UK and this standards will be more flexible than those of EU thus affecting the global market. There will be impact on the aviation industry as well. Designing ,training, management  are not covered in the services mentioned in the agreement .The aviation sector contributes a good amount to Britain’s GDP and this will be affected.UK lost about 33 per cent of the share post the announcement of BREXIT. Moreover, it will affect the passengers travelling from UK to EU region.

Reference:

Artscouncil.org.uk. (2019). [Online] Available at: https://www.artscouncil.org.uk/sites/default/files/download-file/Impact_of_Brexit_Research_2017.pdf [Accessed 11 Jun. 2019].

European Cultural Foundation. (2019). The essential role of culture in the Brexit debate. [Online] Available at: https://www.culturalfoundation.eu/library/the-essential-role-of-culture-in-the-brexit-debate [Accessed 11 Jun. 2019].