Britain's Economic Consequences Of The British Exit From The European Union

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Over the last few years, the probability that Britain may leave the EU has grown. Prime Minister of the United Kingdom David Cameron announced a referendum concerning British membership in the EU to be held on June 23. Essentially not all the changes, which may occur, can be reduced to the question of money, since the problem has a strong political context. Still, this essay is mainly focused on economic aspects of the possible exit. Many experts regard the EU membership as generally beneficial for the UK; still there are some significant drawbacks. At the same time, there are factors that limit any possible prediction of the economic consequences of the British exit from the European Union. Nonetheless, in this work main areas affected by…show more content…
Most studies assume that movement of capital remains free while movement of labour is usually not explored. In addition there are also some less important considerations which all together lead to significant ambiguity for any research in this topic. One of the most visible benefit of the membership in the EU is the absence of trade tariffs between its members. However non-European markets are becoming more important for British producers because of the stagnation of the Eurozone economy and economic growth of the other region especially Asian one. Main claim against membership in the EU is that Britain sells much more goods to the EU than buys. Still this is barely a good reason to leave the Union. Mainly the EU’s trade surplus is accounted by only two counties: Germany and Netherlands, so the UK will not be able to dictate its terms after exit (Sprinford, Tilford and Whyte, 2014). In addition open market with the EU counties boosts the UK’s economy providing more labour and capital for producers. If Britain withdrew from full membership some options may take place in trading relations. Researchers mostly agree that British exit will directly cut the UK’s income from trade in the case of any not free trade agreements. However, the new free trade agreement seems likely to take place. Fiscal contribution is usually regarded as an
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