It is often said that Brexit has given rise to numerous disruptions in the supply chains of goods, as well as to additional costs in the supply chain, especially when it comes to fast-moving...Show moreIt is often said that Brexit has given rise to numerous disruptions in the supply chains of goods, as well as to additional costs in the supply chain, especially when it comes to fast-moving consumer goods. Although previous research has established that due to Brexit the costs for logistics have increased enormously over the past years, previous research has been unable to establish the consequences of Brexit for the costs of road haulage. This is primarily because most of it was either speculative or non-specific (Long, 2022). The research for this thesis uses the expertise of traders and logistic experts to establish the increases in costs due to Brexit and its requirements as well as their significance as of January 1, 2020. The findings are that the increase in the costs is significant due to Brexit, and that increase in transaction costs affects the people of the United Kingdom and the European Union negatively in several ways. It also shows that the FTA which was negotiated post-Brexit is a dysfunctional international economic institution since it has not reduced transaction costs, even though that is one of the main targets of international institutions (Mattli, 1999; Guzman, 2013). As a result, Brexit also forms a break with the trend in the existing literature on economic institutions.Show less
