The European Union (E.U.) is a political and economic union that contains 28 member states that are located primarily in Europe. The European Union was formed with the aim of ending recurring and bloody wars between neighbors, which culminated into the Second World War. In 1950, the European Coal and steel community began to unite European countries economically and politically to secure lasting peace. It started out with six countries in what was called the European Economic Community (EEC). Then in the 1970’s, three countries, including Great Britain, joined the EEC. Great Britain joined the EU to strengthen their economy which wasn’t recovering as quickly as other countries in the EEC after World War II. In 1992 the EEC changed their …show more content…
The Brexit is something that will cause a negative impact economically. Not only in Britain, but around the world. In Britain one element the Brexit effects their Gross Domestic Product(GDP). The UK’s per capita GDP relative to the EU founding members declined steadily from 1945 to 1972. However, it was relatively stable from 1973 to 2010. Reports from the British Treasury, The Bank of England, The IMF, The OECD, the National Institute of Economic and Social Research, PWC, Oxford economics, and the Centre of Economic Performance have all predicted a negative effect on the British Gross Domestic Product (GDP). Around 3 million jobs rely on the EU and no one knows just what will happen to them if they leave. Another point is since the Brexit referendum, Britain has fallen into sixth place for the world 's largest economy, they lost their Top AAA credit rating which means the interest rates will be higher, and the pound has fallen to a 31-year low of about 1.27 compared to what it originally was at about 1.50. With the world economy one element that is affected is the stock market. In wake of the Brexit vote the U.S Stock Market suffered its worst drop in 10 months the day after the vote and with the drop-in stocks, it caused $800 billion dollars to be erased in U.S market value, which is huge and this is just the referendum. Another element the Brexit has impacted in the world
The EU was created after the Second World War to unite the neighboring countries of Europe. It was established by six European countries in 1951: France, Belgium, Luxembourg, Italy, Netherlands and West Germany (Briney, 2015). Today it consists of 28 countries united to create an economic and political community (Gov.uk, 2014).
To me being a Tar Heel means that I made it. I fulfilled my childhood goal of becoming the first person in my family to attend a university. Being a Tar Heel means that I am one of the thousands of individuals who share common goal, to receive a high-quality education that will help provide each of us with a future full of opportunities. Being a Tar Heel means being surrounded by peers, staff, and student organizations that can help me immerse myself in my academics, the school, and the community to help me learn more about myself and others as well as grow and thrive in a new atmosphere with endless resources and opportunities available to me. Being a Tar Heel means being part of a new family, although I will be leaving my mom, dad, and younger
Perhaps the greatest uncertainty associated with leaving the EU is that no country has ever done it before, so no one can predict the exact result. One of the biggest advantages of the EU is free trade between member nations, making it easier and cheaper for British companies to export their goods to Europe. However some economic researchers believe these savings outweigh the billions of pounds in membership fees Britain would save if it left the EU. The UK would also risk losing some of its negotiation power internationally by leaving the trading bloc, but it would be free to establish trade agreements with non-EU countries.
Specifically, in 2017, the World Bank named the United Kingdom the seventh strongest economy in the world, with projected economic growth of 1.3%, 1.6%, 2.1%, and 2.3% in 2018, 2019, 2020, and 2021, respectively (“Trade Regulations,” 2017; “Economic and Risk Analysis,” n.d.). However, these projections neglect to account for the Brexit transition, where higher growth is expected, as regulations will be rewritten to further support trade and welcome foreign investment, with tariffs sinking as low as 1.6% (Wheeler, 2018). Largely, indicating greater economic growth, more available jobs, and higher rates of disposable
Since 1973 when the British first joined the European Union their membership has been a controversial issue. When conservatives in the United Kingdom won the general election in 2015, their election manifesto promised to hold a referendum on whether or not the United Kingdom should stay or leave the European Union. The referendum also referred to as “Brexit” is scheduled to take place by the end of 2017. The United Kingdom initially joined the union to be part of the common market for the purpose of trade and to develop international relationships. The main argument for those who are pro Brexit is that being part of the European Union is too costly for the United Kingdom, that the EU has grown to large, has interfered to far into
The results of the 2016 UK referendum was a surprise to the rest of the world, but there are definitely factors that made this a predictable result. At first glance, one might assume that economics were the main contributing factor to the people’s discontent of membership in the EU. But as I researched, I found that politics in the UK and the EU had a far greater impact on the feelings of Brits. However, some important economic factors still exist.
Due to Brexit London Stock Exchange crashed and it saw trillions of pounds wiped off from UK’s share market. The share market became volatile. The investors of UK’s share market decided to move their funds to other European share market in Germany and Ireland and France. As a result pound lost its exchange value for the first time in last 15
First, what is the European Union? The European Economic Committee(EEC) was founded in 1958 by six countries; Belgium, France, West Germany, Italy, Luxembourg and the Netherlands. The purpose was to ease tariffs and encourage trading between countries in the hope the when countries that share an economy they will be less likely to go to war. The list of countries expanded to twelve by 1986. The EU can trace its
The main global issue that the Brexit has caused global economic growth to decline, and this decline is expected to extend to the long term if things keep going this way. A main reason that this Brexit has caused global economic growth to decline is because Germany and the United Kingdom work closely together, as well as much of other parts of Europe. Because Germany’s automotive industry is very dependent on the United Kingdom. The Brexit is reducing British imports by 12.5 percent which will
Exports have been affected by global events. Most importantly, “Brexit” added to fears that the European Union is unstable and other countries may follow the UK and leave the union. The EU is a major trade partner of the US and China, which could disrupt global trade. Brexit has caused major volatility in global markets as well. This could trigger consumers to stop spending and save more. Brexit also hiked up the US dollar 6.3% against the British pound. This continues the trend from last year of low exports and revenues in the manufacturing sector further impeding profits and limiting their willingness to invest.
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
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.
European Union is a political and economics organization,which consist of 28 countries.It was established by 6 European Countries.The UK joined to EU 1 January 1973 with Denmark and Ireland.EU provides freedom movement of people services capital with standart legislation for member countries.All of these standarts could lead to opportunities such as,free movement.competitive trading(www.europa.eu-official website of EU).According to the official website ‘The EU’s economy measured in terms of goods and services(GDP:Gross Domestic Product) is now bigger than US’s:EU GDP in 2012 (i.b.i.d).All of positive features of EU,nevertheless Currently,It is loudly discussed to withdraw EU in the UK as Prime Minister David Cameron said in 2013 (newspapers).
The need to generate strong economic blocs as well as gain economic advantage with regards to imports and exports whilst promoting internal trade has promoted the development of regionalization as a means to gain the same. This has developed other themes like multi-corporations as well as globalization which are a concept through which regional markets are joining efforts in a universal network with an effort to improve governmental ideas through communication, transport and trade (Sim, et al. 2003). The concept is closely related to those of economic globalization which integrates national economies into the international economy (Robinson, 2001). Such integrations thus have been achieved by trade, foreign direct investment, capital
The European Union is a political community constituted as an international organization whose aim is to promote integration and a common government of the European people and countries. According to the Article 3 of the European Union Treaty, Union’s aim is to promote peace, its values and the well-being of its peoples. It is based on the values of freedom, democracy, equality, law enforcement and respect for human rights and dignity.