THE IMPACT OF BREXIT ON THE UK ECONOMY AS SEEN IN THE FOREIGN DIRECT INVESTMENT (FDI) 2018-2020

Abstract

This study aims to explain the background of the U.K. leaving the European Union membership, describe the U.K. after leaving the E.U. membership, and explain the effect of foreign investment, especially investment, on the British economy. This thesis is based on the basic framework of thought using the Neo-Liberalism paradigm, the concept of Foreign Direct Investment, and the idea of dependency. In searching for data sources, researchers use qualitative methods. The phenomenological case study approach is a research design that seeks to reveal and understand a particular case or phenomenon that has a relationship with the essence of an individual's experience of a phenomenon that is experienced. The results of this study explain that the decision made by the U.K. to leave the European Union indirectly impacts various sectors, such as investment. Since leaving the EU, British investment has declined because the market system is still waiting for policies issued by Britain and the European Union regarding international trade rules. This is also supported by interviews conducted by the author with the Ministry of Foreign Affairs, which explained that the U.K.'s departure from E.U. membership impacted direct investment. So, the exit of the U.K. from the membership of the European Union has a direct or indirect effect because most of the U.K.'s finances are supported by foreign investment.