Behrad is talking about the impact of one of the biggest events in 2016-Brexit on Jaguar in his blog befrad’s blog. PEST is great tool here to discuss the multiple influences on Jaguar. Behrad stated that the major affecting factors in this case would be political and economical.
It’s easy to understand why these two factors are major. As a british brand, when Britain was in EU, jaguar enjoys the lower tariff when trading with other EU countries, which is certainly benefitial because 57% of their cars sold to EU countrieds. When Britain left EU, the free trade agreement doesn’t exist anymore which make the tariff go back to the normal level, the raise in tariff would result in a higher price in Jaguar’s main customer nations, which will cause the loss of competitiveness and then falling in sales. This is of course seen as a bad effect on Jaguar generated by brexit.
However, the good impact from brexit may compensate this. The performance of Jaguar after brexit might be consistent with the whole manufacturing industry in UK. From both Behrad’s blog and the economic analysis we can deduce that Brexit would give Britain a crucial opportunity by allowing it to broker its own trade deals with non-European Union countries; indeed Britain could even have a unilateral free trade policy. Non-European Union countries may find negotiating with Britain easier and quicker than dealing with the European Union’s bureaucratic machine. Here, Behrad gave an example of china, the booming economy in Asian coutries make huge potential market for Jaguar. If Jaguar can enter those markets successfully, then maybe brxit is a good thing for Jaguar.
Other than it, the outcome of depreciation in pound Sterling is actually good for exportation. Lower pound sterling price would increase british products’ competitiveness in international arena. As a result, it is favorable for the sales for all the UK’s product. Nevertheless, the depreciation of UK sterlings are not expected to be long, according to the exchang rate policy in ul. Someday, the market force will push the exchange rate back to normal.
Behrad hold the view that entering Asian market is a back up plan, while i disagree with that. An clear evaluation can be given in behrad’s blog that why the limitation of brexit outweigh the advantages of it. But it’s still a well’completed job by explaning clearly both good and bad effects on Britain.
work cited: http://www.telegraph.co.uk/business/2016/08/04/brexit-puts-brakes-on-auto-industry-as-new-car-sales-slow/
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