Running head: BREXIT 1

Brexit

Name

Institutional Affiliation
 2
BREXIT
Brexit

The Brexit occurred when the United Kingdom official withdrew from the EU

following a referendum held in the nation in 2016. The formal process of Brexit has already

begun, and at the same time, there is much uncertainty concerning the social, political, and

economic impact of the Brexit (Martill & Staiger, 2018). However, the economic impacts of

the Brexit will depend on the outcomes of discussions between the UK and the European

Union. It is because there are still a lot of issues that need to be negotiated which include

immigration, trade, services as well as financial regulations. It is necessary to question if the

Brexit represents national interests as well as economic instability. It is clear that the Brexit

represents national interests and looks to improve the economic standing of the UK.

The UK could gain from the Brexit because it is now in a position to strike free trade

deals with major economies such as the USA and China, and this would add a substantial

amount to the GDP. However, the trading arrangements in the future will largely depend on

the ongoing negotiation with the EU (Martill & Staiger, 2018). If the UK fails to achieve an

opening trade and investment arrangement with the UK, then this could have negative

impacts. At the same time, if the UK decides to leave the EU with no deal, then this would

lead to substantial economic losses. It is also necessary to consider that the exit of Britain

would mean that there would be uncertainty, and this would affect consumers as well as

investors.

Services trade would also be affected if the UK leaves the EU market, and this would

be worsened if the regulations on the financial sector were not subsequently harmonized. It

would lead to a situation where the financial service exports of the UK would be affected in a

significant way (Martill & Staiger, 2018). At the same time, Britain would have to face other

barriers in third-country markets, since privileged access to these nations would be denied
 3
BREXIT
because of the Brexit. The main arguments for the Brexit are political as well as economic,

but the economic aspects are more relevant to consider. At the same time, the new trade

agreement could raise tariffs and cause inflation, and this could affect the UK economy.

Furthermore, a withdrawal from the EU means the UK may not be in a levies amalgamation

with the European Union. It is necessary to consider that Northern Ireland is allowed to adopt

EU customs rules while at the same time keeping Ireland as an EU member, therefore

creating a rift.

Due to this, it will be a taxes and supervisory boundary between Great Britain and

Northern Ireland because of the Irish Sea. The EU and the UK may have the opportunity to

discuss an arrangement that would execute charges on subsequent dealings. However, it

would fail to place the products that are already bought or are in purchase. However,

currently, the UK is already suffering due to the consequences of Brexit (Martill & Staiger,

2018). Brexit has had a significant disadvantage to the UK economy, as there has already

been much damage to the economic growth of the region. At the same time, the British pound

has fallen steadily because of the Brexit, and this has had adverse effects. If the British would

eliminate tariff-free trade with the EU, then this would mean that rates cannot impact

exporting prices.

It would upset UK exporter dealers since the merchandises would gain expenses in

the European market. Charges would help upturn the values of importance in the UK and

especially since a large number of the importations arise from Europe.Increased charges of

imports would alleviate price increases and lessen the living conditions of citizens of the

region (Martill & Staiger, 2018). Another major issue to consider is that the UK would suffer

a lack of proper scientific inputs of the EU, which would harm the economies. It is essential

to consider that the EU gives its members certain benefits such as environmental protection,
 4
BREXIT
as well as capacities for research and development. This means that the UK lacks these

substantial benefits because of its choice to depart from the EU.

The UK will lose economically from leaving the EU because UK corporations can

substantially suffer a lack of reputation for applying for business deals in all European

nations. Currently, the EU allows open bidding from the neighboring nations, and this is of

great business advantage. This means that several industries in the UK will lose because of

these developments (Martill & Staiger, 2018). The employment sector will also lose

substantially because of the exit from the EU, and this is because work will be difficult to get

for the UK employees after the exit from the EU. The Brexit has a significant role to play in

the future of the British economy and could determine whether the economy will develop.

The terms of any future agreement between the UK and the EU will have an important part to

play in impacting Britain’s economy.

The Brexit would have huge connotations on a global scale and will affect both first

world and third world nations. It is becoming evident that the Brexit will not affect global

trade severely. Free trade currently remains constant, and especially because this is the

primary source of economic growth (Martill & Staiger, 2018). Although Brexit might allow

Britain to be independent of the rest of the EU in a political manner, it is essential to consider

that the EU is in economic interdependence with many countries, and this means that the UK

many substantially lose out. The UK needs to leverage between its integration with the EU at

a regional level and its self-reliance, based on national sovereignty at the domestic level.

The UK needs to understand that leaving the EU might not restore national

sovereignty because it depends on the EU, especially in issues related to trade. In the aspect

of globalization, Brexit has implications in the context of Asia, Africa as well as North

America, and it will affect trade with all of these regions (Martill & Staiger, 2018). As a
 5
BREXIT
trading nation, there is a considerable possibility that Britain might lose its influentialism,

especially in issues related to trade. The UK was one of the largest supporters of EU aid

programs in Africa and had a substantial political and financial impact on the continent.

There are fears that the EU’s stance towards Africa may slightly shift with the exit of Britain,

and this could have a negative impact. The Brexit has therefore led African nations to look

for alternative steps of actions in the fear that economic initiatives to the region may be

impacted. In the backdrop of all these issues, it is questionable if the Brexit would be

beneficial or harmful to Britain as a nation and to the globe as well. It is clear that the Brexit

has led to both political as well as economic uncertainty, and this could have negative

impacts.

The Brexit will change the socio-economic landscape of the globe, and it is necessary

to consider both long terms as well as short-term effects that this development will have on

the financial world. A clear understanding of the Brexit will ensure better preparedness of the

aftereffects of this occurrence (Martill & Staiger, 2018). Britain’s withdrawal from the EU

will have positive results, and these will influence various areas such as trade and commerce,

international relations as well as security. At the same time, Britain will also deal with the

results of the Brexit as a nation and will have to ensure the implementation of strategies to

ensure that its local and foreign economic policies do not collapse. In the end, it is clear that

the Brexit promotes national interests of sovereignty, but it places the international standing

of Britain in jeopardy. A proper Brexit agreement will ensure that this occurrence does not

inconvenience both the UK and its international partners.

Martill, B., & Staiger, U. (2018). Brexit and Beyond. London: UCL Press.