Question

OPEN A DISCUSSION AND ASK QUESTIONS ACCORDING TO RESPONSE

Hello class,

Unsure of what Brexit will completely mean to the U.K., companies are reassessing their long-term investments in Britain. The U.K. will have difficulty replicating its current EU trade agreements with other countries around the world. U.K. manufacturers with products made in both the U.K. and EU will need to meet the ‘rules of origin’ requirements with other counties (Morris, 2018).  

There are plenty of doubts around the euro and there is a complete imbalance in the EU as far as unemployment and recession. But, ultimately, the EU is a greater power than the U.K. The UK is a “middle-power” for global trade. “Middle-powers” have sizeable domestic markets and are leaders in certain sectors. They are strong in negotiating power and have good political relations (Trommer, 2017). The U.K. is the fifth largest economy in the world, which is very strong. But, compared to the US, EU, and China, there is no comparison in power. These three markets are “superpowers” which will weaken the UK’s negotiating position (Trommer, 2017).  

Brexit will most likely lead to a decrease in the value of the pound. The U.K.’s growth has slowed by 1.3% in 2018 over the uncertainty of Brexit. The U.K. would lose the advantage of access to the EU’s technologies. The banking industry will take a hit by not being able to operate in all member countries. The cost of airfares, the internet and phone services could all rise (Amadeo, 2019). There is so much unknown at this point to know if Brexit will make the U.K. less competitive or not. The uncertainty is not making things better for the economy currently, but if the U.K. is able to work out strong trading deals and keep their financial services sector strong, they will find themselves in a good position.

Answer 1

"brexit" the word driven from britain exit from EU. is the talk of the country now because of its effect on no just EU but on other countrys as well. the question that comes to ones mind while discussing about brexit are as follows:

a) why is britain exiting EU

b) what is the problem of britain exiting EU or what can be the impact.

c) will the euro value go down if britain exits EU

d) how the relationship will be with EU after the exit.

e)what impact will this brexit have on the other non european nations.

f) is there anything to worry about regarding the world market and exchange rates due to brexit