Globalization Of Brexit

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Due to globalization, stronger relationships, and ties between countries, many companies have become very integrated into the global economy. There is a lot of uncertainty around what will happen now that Britain has voted to leave the European Union. Brexit may complicate business for companies that have ties with Britain. On the other hand, some companies may benefit from Brexit. Some things surely to be affected in some way by Brexit are trade, foreign direct investment, and particular industries in the UK.

Trade is one of the factors that is facing a lot of uncertainty because of Brexit. More than half of all UK trade is with the European Union, which amounts to approximately 15% of their national

income or GDP (Ottaviano, 2014). A cost of leaving the EU would be the decreased trade between the UK and EU due to the reimplementation of tariff and nontariff barriers such as regulations and border controls. In 2014, 45% of UK exports and 53% of UK imports were attributed to the European Union (ONS, 2015). This level of trade creates lower consumer prices and access to more knowledge and technology, which is beneficial to the UK economy. Therefore, a reduction in trade would be disadvantageous to consumers in the UK, because it would lower their living standards. Furthermore, companies may start wanting trade to be routed through other EU member countries rather than the UK to ensure their access to the single market and to make sure that their business continues
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