Business Case Studies & Business Publications

Boris's Brexit Dilemma (B)

Zorc, Saša;Gregori...

Case

Boris's Brexit Dilemma (B)

Zorc, Saša; Gregorio, Alexander

QA-0957 | Published March 13, 2023 | 1 Pages Case

Collection: Darden School of Business

Product Details

In 2019, several years after a referendum in which British voters chose “Brexit,” meaning the United Kingdom’s (UK’s) exit from the European Union (EU), the transitional agreement between the UK and the EU is due to expire. Prime Minister Boris Johnson must prepare for two facets of Brexit, each of which involves a decision: (1) whether to invest in mitigation funding in case of a hard Brexit (meaning one without a trade deal in place); and (2) how to handle the nonnegotiable trade agreement proposal from the EU. Johnson must decide quickly, with the goal of maximizing the UK’s chances of getting the best possible deal. This short B case lays out macroeconomic estimates of the financial impact of Brecit