A Summary on Global Economic Presentation

A Summary on Global Economic Presentation

The word Brexit is a short form of the word British exit. Brexit talks about the withdrawal of the United Kingdom from the European Union. The united believes that leaving the European Union will have some economic advantages to the country; hence this is their main reason for exiting from the union. A public vote was held in favor of the withdrawal in June of 2016, with various theories and explanations being put forth. On the day of the referendum, the poll produced data that showed that 52% of the voters voted to leave the European Union while 48% voted to remain. It was thereafter recorded that the United Kingdom officially left the European Union on the 31st January of 2020 and was placed into a transition period for eleven months under rules and regulations to which they must adhere to.

According to history, the European Union was established in the 50s and early 60s, where it had 27 member states in Europe, which originally was 6. In addition to that, the European Union had a total number of 447 million people from a collection of treaties and financial agreements. The United Kingdom has been a part of the European Union since 1973. Since the United Kingdom wanted to become a sovereign country, it has never used the euro as its currency. Moreover, the United Kingdom is not the only country that does not use the euro. Statistics show that since the first establishment of the euro, which took place on the 1st January of 1999, only 19 out of the 27 countries use the currency. The euro was introduced to establish a standard monetary policy and monetary union. The main goal of this action was to make it easier to move across borders and to create a stable economy. The Britex leaves behind a legacy since the United Kingdom is the first country to withdraw from the European Union since it was established.

Since the exit from the European Union, the United Kingdom’s economic growth has slowed down, and the British pound has dropped in price. This is because the United Kingdom no longer has the free tariff trade with the European Union companies. The exit has also led to social damage and loss of freedom of movement for the United Kingdom citizens. Statistics show that the European pound will fluctuate since their trade will no longer be bound to the European Union’s rules and regulations. Following the United Kingdom’s regulations and tariffs, British based businesses will have a rise in prices outside of the European Union. Apart from these negative effects of the Brexit, there are some positive impacts, including the improvement of border security, new job opportunities, and the establishment of sovereignty in Britain.