Question

OPEN A DISCUSSION AND ASK QUESTIONS ACCORDING TO RESPONSE

Classmates and Professor,

This has been a huge topic of discussion in Europe as well as around the world for the last two years. With the United Kingdom leaving the European Union there are many things to consider if you are a company trading with either of these groups. The UK might find that companies are hesitant to continue trading with them following the split, until the country has figured everything out. We will see global companies waiting to find out how the government pans out their new monetary system and ways of doing business. Initially, this could hurt the UK's economy with little to no faith coming from other countries in the beginning. However, this is a great time for companies to get involved in the economy early with hopes that they do well and everyone turns out wildly successful. It's hard to say which direction the UK will go but there are definitely pros and cons that every globally trading company should consider during this transition (Lawless, 2019).

I feel there are many more successful opportunities for companies trading within a Union such as the EU with a single currency and homogeneous regulations than that of a new found economy that the UK is trying to establish. This is a huge change for the United Kingdom that I am sure will take time to switch over to and do so successfully. There are dangers in trading with such a new found way of conducting business versus the long standing EU that encompasses 28 European countries. This makes trading with this Union much easier as the rules, regulations and currency are already widely known and understood.

Brexit is not certain to make the UK less competitive, but it isn't helping them because of the above observations. There will be some very unhappy people who now have to live with this decision that could cause further problems. England and Wales voted for the UK to leave the EU while Scotland and Northern Ireland voted for the UK to remain within the EU (Hunt & Wheeler, 2019). There is a 26 page declaration detailing the aspirations of the future for the UK, however, it is difficult to say how things will truly pan out once the split takes place March 29, 2019. The UK has the potential to have economic hardship due to the lack of faith in their new systems but there is also the opposing side. Some companies might find now is the time to move their business to the UK and trade heavily with them to help boost the economy. Which could be successful for everyone down the road.

Answer 1

Brexit has its own pros and cons but the cons certainly superseded the pros. The Brexit event which comes to fruition on29th March 2019 is posied to leave UK out of EU which can cause short term instability in UK since companies no longer enjoy thr single currency market, regulations, compliance and superiir accessibility to markets under free territories. So companies have to shift their bases and boost economic activity as well as job opportunities for UK citizens which already faces an immigration issue just like US Does which is an uphill task.

It would be interesting to see how Brexit commercialises and what impacts it holds in future because of volatility .

To deep further following questions can be asked;

1. Cause of Brexit and Impact of Brexit on EU ?
2. GDP per capita change, Unemployment and Inflation numbers change, are all which makes macros. Hence what would be macros untill 2020 end ?