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

The EU operates as a single market and provides the member states with the opportunity to trade freely between each other. Currently the EU is facing a serious economic crisis; it is trapped in a cycle of low growth, falling income levels and rising unemployment. However, if Scotland achieved its independence they would have played a key role in ensuring the EU obtained some form of recovery. If Scotland was a member of the EU they would benefit from free movement of goods and services allowing Scotland to trade with other member states. As a result other member states would have access to Scotland’s oil reserves and would be able to reduce its dependency on importing oil from countries such as Russia, Kazakhstan, Azerbaijan who are all non- members and would be selling oil barrels at marginally higher prices. A fall in the level of imports would create a positive impact on the EU as it would help them reduce their trade deficits. Since the EU is Scotland’s main destination for international exports, the more trade taking place within the EU would also stimulate economic growth in Scotland, the below graph shows a possible outcome of what would happen to Scotland’s real GDP with the increase in trade between EU member states.

The issue of whether or not the United Kingdom should remain a member of the European Union has been debated heavily over the past decade, with the debate heating up even more from the current European Sovereign Debt Crisis. Recent polls of the UK population showed that around half of the UK’s citizens would vote to pull out of the EU if it went to referendum. However, after all of the economic, political, and social advantages of being a member of the EU are considered, it remains clear that leaving the EU is not in the UK’s best interest. Economically, it does not make sense for the UK

Whether the United Kingdom decides to join the European single currency and replace the pound with the euro will have profound economic as well as political effects on the country so is a very important decision and has considerable variations in attitudes towards the topic, although the British public opinion has consistently opposed joining the euro. The euro is currency shared by 18 of the European Union's Member States. The euro was introduced in 1999 and automatically became the new official currency of 11 States, followed by another 7 countries joining to date. However, the UK negotiated an opt-out to from the Treaty meaning they don’t have to adopt the common currency as they fit a certain criteria [1]. Joining the European single currency can have major advantages for the UK, such as diminished uncertainty of exchange rate for businesses and the decreased need to pay transaction costs of changing currencies when abroad. It can also have disadvantages such as loss of domestic monetary policy and variable rate debt in the UK.

The decision of the United Kingdom to leave the European Union has served in reshaping the way politics works in Europe. On June 3rd, 2016 a massive 30 million people came out to vote on the future of their countries. In the end, the vote to leave won 51.9% to 48.1%. Places like England and Wales both voted in favor of the exit, while Scotland and Northern Ireland voted overwhelmingly to stay in. While the long term effects of this decision obviously need time to be observed, the immediate economic impact has been somewhat mixed. The day after the vote was a cause for concern in that “the pound slumped after the referendum - and remains around 10% lower against the dollar and 15% down against the euro” (Wheeler 17). In contrast to this,

This report will look at the benefits and issues surrounding the UKs decision to remain as a member state of the European Union (E.U.). Along with the newly elected conservative government, came the announcement that a nationwide referendum would be held, by the end of 2017, in order to determine the British public’s stance on the issue of EU membership.

This isn’t to say that only the UK had something to gain from being a member. As of 2016, around half of the United Kingdom’s exports go to the European Union; that is to say that both the UK’s and the EU’s economies were benefitting from the UK’s membership and business with the European Union’s single market. The EU’s single market, one market for all EU countries, gained much from the UK’s contribution and is sure to take a hit when the United Kingdom

The first reason why Britain shouldn't leave the EU is because it would hurt trade. A major benefit of the EU is the trade. Combined, all the countries in the EU have a large influence over world trade. This allows them to get more money for other EU countries.

So after the result of the referendum had been out, the first affect is the pound had fallen sharply, according to (Taub,A. 2016.) the pound is at its lowest valuation in seven years. Due to the (Hunt,A. & Wheeler,B. 2016) uncertainty rushing around, a British exit will likely result in a massive rebalancing of currencies. Investors will (and have already begun to) dive out of the British pound and into cash that's perceived as safe — the Swiss franc, the Japanese yen, the U.S. dollar. The changing direction of the investor and the fallen of the pound has spiked the value of Yen which has made Japan’s export being less competitive. Even the fallen of the pound can help the export business and attract more tourism to the country ,which due to the (bbc no name) The travel analytics firm ForwardKeys says flight bookings to the UK rose 7.1% after the vote. The import business still have to pay more for the fuel and material due to the costs which have increased 7.6%. Moreover, since 51% of goods and 45% of services of the British’s export are taken over by the EU. Losing access to the EU single market would mean less trade and less productivity growth which could (Chu,B.2016.)make

This report notes that the UK has the possibility of leaving the European Union (EU). The UK as a member of the EU has rights to get some good policies on trade. In the meanwhile, the UK also need to obligate the restrictions of businesses that published by the EU. The UK’s economic has correlation with the EU. Therefore leaving the EU (Brexit) might bring some changes on trade, employment, the regulations of businesses and the position of UK in the world. This report analyzes the positive impacts and negative impacts that might be brought to the businesses in the UK if UK decides to leave the EU.

What kind of harm will Britain pulling out of the European Union cause to the equilibrium, even with them taking precautions?

I have come to the conclusion that my hypothesis is valid, it would be disastrous if the UK decided to leave the EU.

It is the responsibility of every government to defend its citizens in all matters when it comes to maintaining the economy. Every economy comes against different challenges including the business cycles that may stem from the world market. In this essay I will try to explain the actions taken by the United Kingdoms’ union government in trying to make sure that the economy profits from all citizens and reduce the whole load to it. I will consider the recent events of their split from the European Union.

The European Union’s economy, despite being one of the largest in the world; very comparable to the size of the economy of the United States, does not provide a great benefit to the UK. Both the economies of the UK and of the EU are less than ideal for the respective nations, but

Brexit is not a just a political debacle, but also a great financial issue. The author points out that it is considered to be a bigger concern than Scotland’s independence. Bankers and other financial sectors feel that Brexit can cause a huge deal of loss, because Britain is said to be the gateway for the rest of the 28 nation European Union, a market which holds about 500 million more than what is prevalent in the United States and Japan combined. Anderson feels that for most big businesses like Goldman Sachs or Citigroup, London is the financial capital, which provides a gateway for nearly all of Europe. Without the unregulated access, the free flow of capital, resources, talent and goods and services would have to be renegotiated, making it difficult for the European nations. The financial industry is said to be the most affected since it accounts for about 7 percent of Britain’s gross

Literature review: In September 2017 Thomas Sampson from The London School of Economics and Political Science wrote a Literature on Brexit. The title of the literature was Brexit: The Economics of International Disintegration. In this literature review I will briefly summarise the literature wrote by Thomas Sampson.