As businesses are taking the first few steps to bring back a semblance of normal trading and recovery from the buffeting felt from both the coronavirus pandemic and the consequences of Brexit, it seems that as far as Brexit is concerned it is not all bad news.
Cityam published a survey by EY and London First examining the effects of Brexit on long-term prospects for business. At present, the wider effect of Brexit in relation to businesses will not have been felt as those businesses that routinely rely on attracting talent from the EU have yet to experience the full impact of the additional measures that are required as Britain is now a non-EU country. The points-based system is impeding recruitment from the EU and the rules governing the activities that a non-EU citizen can undertake in EU Member States vary from country to county. Also, the changes to business travel may have greater consequences in the future.
It is expected that the delays currently being experienced at the borders will lessen as all concerned begin to manage the new customs arrangements more efficiently and once the "sticking points" in procedures have been identified there will be a concerted effort to find ways to iron-out the problems.
The additional costs, experienced by most businesses, are, for the most part, almost certainly intended to be passed on to customers. However, Giambrone's experienced corporate and commercial lawyers consider that in a competitive market businesses would be wise to re-think their long-term pricing strategy and determine whether other measures such as renegotiating supplier contracts or seeking additional markets as more perceptive methods of rationalising their pricing strategy, rather than passing on additional costs to their customers which may pose a material risk of losing existing customers and failing to attract new customers. Businesses must also match their professional advisors to the market or markets they are considering. Giambrone has offices throughout Europe and our lawyers' astute legal advice is supplemented by invaluable cultural knowledge which
The preparations for the inevitable changes that Brexit would bring to those businesses trading across the European borders have resulted in many of them gaining an unparalleled insight into their business model, operations and understanding of their existing markets and the potential opportunities in new markets.
Giambrone's corporate and commercial lawyers point out that in many businesses the long-term vision and strategies are rarely properly interrogated with thoroughness and the vigour required. Familiarity with the market and unwillingness to bring about radical changes to a system that is perceived as working well are partly the cause of the reluctance. Often one or two directors or partners may want to undertake a thorough review but their colleagues are resistant, not wishing to spare the time to do so. Brexit provided a unifying compelling reason to embark on such a project, removing the complacency previously exhibited.
Businesses must also match their professional advisors to the market or markets they are considering. Giambrone has offices throughout Europe and our lawyers' astute legal advice is supplemented by invaluable cultural knowledge which assists our clients to understand the varying ways of doing business in a number of countries and facilitates greater understanding between all parties.
International trade operates in against a backdrop that is increasingly complicated and is complex to navigate. Commercial agility is vital, as has been clearly demonstrated as an essential feature by those businesses that swiftly changed their way of doing business in response to the coronavirus pandemic, conventional restaurants offering a takeaway service and retailers selling online. Businesses must develop dynamic trade strategies that are regularly reviewed to maintain competitive advantage.
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