Brexit(British Exit)– refer to the recent U.K. referendum by British voters to leave the European Union could have a wide impact in the U.K. and the world’s economy.
The European Union came to be after World War ll, when the desire to keep at the peace and prevent any future conflicts,now part of a “strong” coalition.The E.U.main purpose of service was to allow free trade and easy mobility while migrating from one European country to another among other negotiations.
While British has always been at a far fetched relationship with the E.U. and has had many differences with the Union over the years,its leave would be greatly damaging to the continent’s economy among other problems.
Financial experts such as Bank of England,OECD ,Financial HM Treasury and others have all predicted that leaving the E.U. would have a serious negative effect of the British GDP.
The U.K.’s leave from the E.U. could not allow legitimate control of its borders, as if it decided to close its borders and no longer be part of the single market ,which allows mobility of labor into and out of the U.K .The U.K.’s trade business would crumble as the E.U. is the world’s leading partners with the U.K.
In addition the U.K. is the world’s leading market,without it the U.K. would not be a high priority for other countries to negotiate trade deals.
Other financial burdens that could come from U.K. closing off it’s borders exports in which 50 percent of it’s sales are from the E.U. and could lose half of its exports revenue if it decides to completely block its borders to current European partners.
As of now there are 300,000 British companies and 74 percent of British exporters who operate in E.U. markets.
Among other financial risks due to its leave would include losing a market of 3.5 million British jobs that are directly linked to British membership of the European Union’s single market.
Other financial dependencies to the E.U. include benefits like lower phone roaming charges ,lower credit card fees ,cheaper flights that could not be achieved by Britain alone.
The U.K. is the second largest beneficiary of EU research funds and the British government expects future EU research funds to be invested for the use its universities and companies.
These and other financial,political,social ,geological crisis can arise from the leave of the union.