What Is The Impact Of The Uk Decision To Leave The EU?

With the infamous “Brexit” vote in 2016, the United Kingdom’s (UK) separation from the European Union (EU) was only the start of the union’s eventual downfall. Upon exiting the EU, the UK also chose to leave the EU’s Single Market, causing friction for UK manufacturing firms. The Single Market Strategy removed internal borders and other regulatory obstacles between EU states in regards to trade. The function of the Single Market was to “stimulate competition and trade, improve efficiency, raise quality, and cut prices.” However, with “Brexit”, the UK lost rights to sell to into the European markets without discrimination. Huge tariffs were placed on EU imports that caused financial distress to

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

Billions of pounds each year is spent on membership fees to the EU that can be spent on British public services and Infrastructure. Many strict rules and regulations need to be upheld by being in the EU and it “restricts” the UK from reaching their full potential. Furthermore, immigrants are allowed to freely move into England and are taking over the citizens’ work, thus decreasing job opportunities and wages for the British people.

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.

The harsh truth is that our economy accounts for just 3% of the world economy and that figure shrinks every year. Despite the EU knocking down trade barriers, the 'NO ' camp claim that our poor trade with other countries are refraining us from economic prosperity. Again, this is false. UK sales to the BRICS nations was only 6.6% of our exports in 2012. This is paltry compared to the EU, who make up the majority of our exports. And no wonder, with free access to a market holding 500 million consumers, British businesses are taking full advantage of this. The nations that supposedly hold the key to our future don 't even want us to leave the EU. The Australia foreign minister commented that, "strong, active membership of the EU" contributes to the power of our economy. The USA President, Mr. Obama, recently said, "EU membership is necessary to keep UK 's global influence." And China, which is seen as the golden nation for us to export to, has briefed that they see Britain as, "an old European country only good for travel and study." Back home, our great businesses have talked out against leaving Europe one by one. A survey for CBI found 78% of our big employers reject leaving the EU. A separate survey found that 84% of small businesses wanted to stay in the single market. And large corporations such as Goldman Sachs, CitiGroup and JP Morgan have all said they 'd switch new business to central Europe. A

In regards to the welfare effect, if Britain were to leave the EU they would regain full control of their borders, meaning EU nationals would face the same visa restrictions as those outside of the EU. This could create more job opportunities for British workers and boost wages, and possibly could result in easing pressure on hospitals, schools and other public services. On the other hand, pro supporters of remaining in the EU argue that immigration from the rest of the EU has been beneficial for Britain’s economy, and that growth forecasts are heavily based around high levels of net

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

Industry, within the United Kingdom has changed, during the 1960 and 1970 manufacturing was a significant part of our economy, however many business were government run and failed to respond to international markets. These state own businesses just could not afford to run and were sold off as they were loss making and were just not efficient (Wikipedia 2015). However manufacturing still continues though not on the same scale, many of these businesses have transferred overseas, where production costs are considerably lower.

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

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.

As the Brexit process will not have been completed by this date and for UK businesses to continue to conduct business with Europe, it would be good practice to ensure that your processes and procedures comply with this

The term “recovery” means expansion, which shows the strength of the economy after recession. In recovery, real GDP will start to increase and unemployment will fall. It is the cycle when the economy begins to grow again after recession. In the period of recovery, various indictors will increase such as Gross Domestic Product (GDP). (Manuel, 2016) In an economic recovery, workers demand will increase and companies are willing to employ more staff, which mean unemployment rate will decrease , worker’s confidence will start to increase and consumers are willing to consume goods and services. In other words, unemployment falling, national output and income, consumption, investment, imports and inflation all rising, economics growth accelerate. The exporters in the UK will increase their productivity in order to increase exports and reduce a negative balance on trade in goods account on the current account is known as trade deficit.

A political issue that the United Kingdom is currently facing is the increase of unemployment which is positively helping the economy, as a result. The number of citizens not working in the UK decreased by 63,000 to 2.33 million in only three months to January 2014, according to official figures. (BBC) This is clearly a significant current event in UK at the moment because 7.2% of their population is without a job. The unemployment rate in Scotland fell to 6.9%, in Wales it was 6.7% while in Northern Ireland it was 7.5%. (BBC) Interestingly, I found that the Prime Minister David Cameron tweeted: "Another significant fall in unemployment is a sign our long-term economic plan is working, providing security and chances for hard-working people."(BBC) In other words, the rising rate of unemployment is not necessarily a clear indicator of a shattered economy. A large portion of the “unemployed” are self-employed businessmen or entrepreneurs working on their own ventures and have found new ways of producing a steady income within the British economy. Ultimately, the economic history and politics of this nation have been originated by Parliament and are the primary cause for the rapid growth in the business market right now.

In another situation that could be looked at, it is not an automatic yes for the European Economic Area to take the UK in, they might also not be as lucky like the other non-EU countries that have been granted bilateral terms a good example will again be Switzerland. From the situation of brexit, the UK considered less attractive to overseas investors. As a result, this in turn means city like Paris and Frankfurt will take advantage in the situation and try to claim as much share of the advantageous markets to better their financial services. The question that is in the air is will brexit deplete the UK financial services sector because of all the harsh and sever EU regulations. For his situation is very unlikely because the domestic home based organisations will still need to accept these regulations for all other EU transactions. However, with brexit getting more certain and sable for the UK financial market another question will be to know if the EU regulations for the UK would be a big burden for their transactions outside the EU as financial regulations are still developing. It can be difficult to put a monetary value on the impact of the regulations of brexit. It will be very likely that not all these regulations would put the home based organisations in UK at a competitive disadvantage, as the EU is the world’s largest financial service exporter, besides, making a great amount of the world’s financial services