European Union 's Impact On The World Economy

With reference to organisations or industries that you know, to what extent do you think that recent changes in the UK economy will have inevitably damaged the long-term profits of businesses that operate in this country? (40 marks)

The UK economy is constantly changing for various reasons such as improvement in medicine and increased globalisation leading to people living longer and the UK economy becoming more diverse culturally. Whether or not it provides an opportunity or a threat to a business will largely depend upon how the management of the business decides to attempt to change because of the change of the demographics.

4). Under the optimistic scenario the UK will have to pay the EU to remain a part of the EU’s single market, resulting in an increased cost to trade, while under the pessimistic the cost of trade for Britain will increase due to tariffs and increased regulations to get their product into the market. These increased tariffs, and the costs needed to meet regulations hurt the suppliers of goods resulting in a slowdown in the flow of goods and a reduced GDP. Dhingra et. al. uses the estimations of the two scenarios to show a direct correlation between leaving the UK leaving the EU and detrimental impacts to the UK’s economy, and as such the flow of goods.

Since 1950 European Union (EU) was created it has promoted peace, prosperity and values among the member nations and its neighbouring countries. EU’s influential tools, has helped transform many European states into functioning democracies and prosperous countries. EU’s membership has grown from 6 to 28 countries (Enlargement, 2014), satisfying a historic vow to integrate the continent bringing in most states of Central and Eastern Europe (CEE) by peaceful ideals.EU has anticipated the enlargement as an extraordinary opportunity to endorse political strength and economic success in Europe. EU’s extension policy is open to any European state that fulfils the EU’s political and financial criteria for membership; still the political process of inclusion of new state requires a unanimous agreement from all the existing 28 member states. Europe is considered to be more flourishing and safer place due to the promotion of democracy, anti-corruption policy and the single market policy.

The Government in the UK is relatively stable. We currently have a coalition government as none of the political parties got enough votes to win the majority. Therefore, both of the parties’ manifestos are co-joined so there is a lot more UK businesses need to prepare for. Political decisions can affect businesses

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

It is precise that we begin by explaining the meaning of the term “Brexit”; it is a portmanteau of the words “Britain” and “Exit”, which was just one of the terms for the results of the 2016 referendum, the other one was “Bremain” (Britain and remain) which was a lot less promoted and controversial. For the 2016 referendum, 52% of the votes went for Britain leaving the European Union, in a poll with 72% of participation, a total of 33.577.342 votes, 17.410.742 for Brexit and 16.577.342 for Britain staying in the European Union (BBC World, 2016). England voted for Brexit, by 53.4% to 46.6%, as did Wales, with Leave getting 52.5% of the vote and Remain 47.5%. Scotland and Northern Ireland both backed staying in the EU. Scotland backed Remain by 62% to 38%, while 55.8% in Northern Ireland voted Remain and 44.2% Leave (Hunt and Wheeler, 2016).

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

With the effect of the Single European Act on 1st July 1987, the emergence of European Union (EU) as a common market has essentially been created. The benefits of this act are substantial to European firms, economies, and workers. It eliminates conflicting national regulations and trade barriers, as well as offering firms opportunity to sell their goods to all other EU members (Griffin & Pustay 2005).

With Britain’s vote to no longer remain the EU, its economy could take a dangerous hit and weaken considerably. Emma Charlton and John Robison, journalists for Businessweek, claim that “voting to leave the European Union would dramatically increase the UK’s chances of” (Charlton and Robinson) recession because of the risk that it places on the economy. Their prediction points out how much of a threat leaving is to Britain because of the consequences that it will bring to jobs, growth, and investment. Lukanyo Mnyanda and Lucy Meakin, journalists of Businessweek, point out how parts of Britain’s economy have already been hurt by the decision, with the "[pound] sterling earlier [reaching] $1.3229, the lowest since 1985...[weakening] 6.2 percent to 81.27 pence per euro, for the biggest decline on record" (Mnyanda and Meakin). This decrease in the value of the pound is dangerous because a weaker pound will make UK imports, like clothes and diesel, become more expensive because they require a larger value of pound in order to be

After the United Kingdom’s (UK) decision to leave the European Union (EU) there has been numerous questions and uncertainty of how this will impact the British economy and its trade market. By enlarge the majority of large businesses argue that it will have a negative impact and consequently have backed out of protentional new investments in the UK because of this uncertainty. An example of this is Lloyd’s of London who have axed plans for a new sharing worth potentially 9 billion pounds due to post- Brexit instability. This may also be the case for many large businesses until the leave is complete and the economy is once again stable. However, it can also be argued that Brexit may very well lead to new trade opportunities outside of

Early this year the United Kingdom held a referendum to decide whether to leave or stay apart of the European Union. This event is called the “Brexit” (Britain exiting the European Union), but even though the acronym only includes Britain it means the entirety of the United Kingdom. In the referendum, most of England and Whales voted to leave while Northern Ireland and Scotland voted to stay. Ultimately the United Kingdom’s vote was won in favor of leaving the EU with a 51.9% vote to stay and a 48.1% vote to leave (BBC News). Now the question is what does this mean for the UK and how will this impact its economy in the future? It may be too early to tell how this will play out, but for us to identify what is happening now we must thoroughly and truly understand the reasons for this Brexit in the first place.

In order to understand the evolvement of the Single Market of the European Union, one has to take the general background into consideration. Therefore, it is important to have a look at the Treaty on European Union (Maastricht Treaty) which gave birth to the creation of the Single Market. Having been the Common Market before the Maastricht treaty, the European Economic Community (EEC) Treaty already clarified the objective of cooperation between member states. Throughout the Single Market, those objectives should be transformed into reality.

This report will explain the meaning of Brexit and introduce the influence of Brexit on macroeconomic in Britain. The definition of Brexit is that the Unite Kingdom (UK) will exit from European Union (EU), which raising concern around the world. Brexit has drawn greater worldwide attention, then the increasing number of questions which about the damaging of British macroeconomic has been referred. According to “Brexit means Brexit”, which said by the prime minister of UK. The government of Britain is determined to deliver an exit from the EU. Moreover we can not ignore that the UK has already been a semi-detached

Also, because UK is leaving the EU, they will not be able to participate in free trade with other European countries. It will not have access to the European Single Market, which is comprised of 500 million consumers and low trading costs. If they leave the union and don’t make an appropriate deal, the tariffs and quotas will increase, which will decrease exports and imports. This will not affect the net-export value initially; however, the companies that mainly focuses on exporting their goods or companies that imports parts from foreign countries to make their product will be