European Union 's Impact On The World Economy

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It is undeniable that the news of Britain voted to leave European Union has shook the world greatly. The UK’s withdrawal or widely known as Brexit would definitely have an impact on the world economy, particularly to the businesses in UK which is claimed to be the main concern after all. Over 99% of the businesses are Small or Medium Sized businesses (SME’s) which is equivalent to 5.4 million businesses in total (House of Commons Library, 2016). Of course, these businesses will be affected, both directly and indirectly. This essay will discuss mainly on the opportunities and risks that these businesses will face as a result of Brexit.
As the world already knows, ‘Single Market’ is greatly known for European Union’s biggest achievement and …show more content…

Despite of that, it is always argued that Brexit would not make the UK government subsidise in agriculture, or even match the current level of subsidy under CAP (Emily Gosden and Marion Dakers, 2016). Nevertheless, even if the case of subsidies being cut down, there is always opportunity that Brexit will bring in to the farmers, but left unknown. For example, the UK government might think of better ways to support the farmers or better yet introduce an improved scheme. The latter, without doubt will provide even better and higher support to the farmers. In conclusion, farmers might lose but Brexit can possibly offer an opportunity to the whole system.
On top of that, the biggest export market for UK is claimed to be Europe (Anon, 2016). Hence, making a decision to leave the European Union will only affect the UK economy even further, particularly to the small businesses in UK. Additionally, the weaker pound will only put the small businesses under high risk. This statement is further reflected from one of the most world known engineering-based company, ’the Group’ as its executive chairman once said that their revenue was broadly flat as a result of Brexit and the orders remain weak and patchy as well (Andy Bounds and Chris Tighe, 2016). This is indeed associated with the absence

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