BMW Threatening to Leave the UK in the Dust
While its main headquarters are in Germany, the automobile and motorcycle giant BMW, is no stranger of expanding into international market as it produces vehicles in Germany, Brazil, China, India, South Africa, the United Kingdom, and the United States. However, the company may have to remove the UK from its roster of production sites due to the impending Brexit. At present, the UK plays host to four productions site for BMW and 8,000 employees – 4,500 of which work at their flagship Mini plant in Cowley, Oxford.
BMW’s concerns are with the possibility of customs delays, they say that if their supply chain gets stuck at the border because of new Brexit laws, this will be a deal breaker for them and will unfortunately, force them to move their plants elsewhere, causing thousands of loyal employees to lose their jobs, as BMW is given no option but to go global elsewhere.
Can Swift Keep Waving Its White Flag?
The Society for Worldwide Interbank Financial Telecommunication, known as Swift, is a system that facilitates cross-border payments for all – it prides itself on being a politically neutral utility. Swift’s neutrality is currently being challenged by US President, Donald Trump who has recently reactivated US sanctions against Iran, which means by law, Swift is required to cut off targeted Iranian banks from its networks by November.
This poses a risk for Swift’s international business that includes an international market expansion with offices in the Netherlands, the US state of Virginia, Switzerland and un-disclosed emergency recovery sites – as their clients expect them to stay neutral and if not, all of their operations integrities are at risk, which is why they are fighting back, in hopes of being exempt from complying to President Trump’s decision.
UK Government Sets up the Business Basics Fund to Support SMEs
As companies threaten to flee the country, due to the possible repercussions of Brexit, the UK government has announced an initiative, in hopes of boosting its economy by £100 billion. This economic growth will be made possible by the Business Basics Fund – a fund of £8 million, which will help SME’s adopt new technology and management techniques.
With the country facing so many uncertainties, it is encouraging to see the UK invest in themselves, offering reassurance to their citizens as they make an effort to support their economy which is sure to change when Brexit finally occurs.
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