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    Brexit

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    In June 2016, British citizens voted to leave the European Union (EU), known as "Brexit". This triggered immediate economic changes as the value of the British pound dropped significantly. The UK has begun a two-year process to negotiate new terms with the EU before fully leaving in March 2019. Brexit is expected to negatively impact both the UK and EU economies through decreased trade, higher import prices and costs for British companies that do business with EU countries. The long term effects are still uncertain but some predict negative consequences such as reduced foreign investment and immigration to the UK.

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    Brexit

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    102 views11 pages
    In June 2016, British citizens voted to leave the European Union (EU), known as "Brexit". This triggered immediate economic changes as the value of the British pound dropped significantly. The UK has begun a two-year process to negotiate new terms with the EU before fully leaving in March 2019. Brexit is expected to negatively impact both the UK and EU economies through decreased trade, higher import prices and costs for British companies that do business with EU countries. The long term effects are still uncertain but some predict negative consequences such as reduced foreign investment and immigration to the UK.

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    In June 2016, British citizens voted to leave the European Union (EU), known as "Brexit". This triggered immediate economic changes as the value of the British pound dropped significantly. The UK has begun a two-year process to negotiate new terms with the EU before fully leaving in March 2019. Brexit is expected to negatively impact both the UK and EU economies through decreased trade, higher import prices and costs for British companies that do business with EU countries. The long term effects are still uncertain but some predict negative consequences such as reduced foreign investment and immigration to the UK.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    102 views11 pages

    Brexit

    Uploaded by

    api-379339840
    In June 2016, British citizens voted to leave the European Union (EU), known as "Brexit". This triggered immediate economic changes as the value of the British pound dropped significantly. The UK has begun a two-year process to negotiate new terms with the EU before fully leaving in March 2019. Brexit is expected to negatively impact both the UK and EU economies through decreased trade, higher import prices and costs for British companies that do business with EU countries. The long term effects are still uncertain but some predict negative consequences such as reduced foreign investment and immigration to the UK.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 11

    Brexit

    Arish Nota, Andrea Lara, David Suggs, Michael


    Leung, Sohaib Anees, Shahana Shaikh, Stephen
    Davis.
    History of the E.U.
    Europe post WWII
    1973: Great Britain joins European alliance
    1993: Formation of the E.U.
    1999: Introduction of the Euro
    What is Brexit?
    June 2016: British citizens vote to leave the E.U.
    52% voted in favor of leaving
    Triggered immediate economic changes
    March 2017: 2 year process initiated
    2 years to negotiate new terms between U.K. and E.U.
    March 2019: U.K. will no longer be a part of the E.U.
    Effects on Great Britain

    Pound Value dropped within 24


    hours of vote
    1.475 to 1.325 Dollars per Pound
    U.K. stock market rose
    More Pounds per Dollar
    Exports increased
    Reduced trade deficit
    Effects on Great Britain Continued

    Decreased imports, and raised prices on imported products


    Higher rate of inflation
    Decreased rate or wage increase
    Less spending
    Drop in immigration
    50k less people moved to the U.K.
    U.K. residents and foreign workers left
    House price growth decreased by 50%
    Avg 4% growth per year prior to June 2016
    Effects on the European Union
    Import from UK will increase

    Countries such as the


    Netherlands,Belgium, and Ireland will
    have a downturn in terms of trade.

    May cause recession within few EU


    countries such as Netherlands,Belgium,
    and Ireland.

    Businesses(corporations) would
    transition from Britain to the EU.
    Effects Internationally
    Due to the drop in value of the
    pound, countries now have more
    purchasing power when doing
    business with Britain

    Imports increased which would


    make Britain hesitate to import
    materials or services from other
    countries
    Effects Internationally Continued
    Likely to leave a gaping hole
    of about 9 billion annually.
    Due to its loss of trade, services,
    and FDI
    Negatively impacts UK more than
    it does EU
    Companies will push capital
    out of the U.K. to safe havens
    like the United States and
    Japan.
    Empowers U.S. Dollar and
    Japanese Yen
    Negatively impacts exports.
    Negatively impacts emerging
    markets.
    Opinions on Brexit
    Too early to tell the true effects on the UK
    The immediate effects dont seem so bad with the stock market rising
    In the long run Investors may pull out
    Inflation may get out of hand
    Other European countries seem to be more radicalized
    France may follow suit and leave the EU along with Italy
    Austria elects a more radical leader
    The EU may crumble all together
    The US has benefited temporarily by taking advantage of the low pound
    40 percent of US firms with offices in the UK are now considering relocating to EU
    countries
    Citations
    Amadeo, K. (2017). Brexit Consequences: For UK, EU, and U.S. [online]. Available at: https://www.thebalance.com/brexit-
    consequences-4062999 [Accessed 6 Oct. 2017].

    Bowler, T.. (2017). How has the economy fared since the Brexit vote? [online] Available at: http://www.bbc.com/news/business-
    36956418 [Accessed 2 Oct. 2017].

    Emerson, M. (2017). An Assessment of the Economic Impact of Brexit on the EU27. [online]. Available at:
    http://www.europarl.europa.eu/RegData/etudes/STUD/2017/595374/IPOL_STU(2017)595374_EN.pdf [Accessed 6 Oct. 2017].

    Euro Dollar Currency . (2012). History of Euro. Retrieved October 7, 2017, from Euro-Dollar-Currency: http://www.euro-dollar-
    currency.com/history_of_euro.htm

    Forbes.com. (2017). Forbes Welcome. [online] Available at: https://www.forbes.com/sites/baininsights/2016/06/29/the-potential-


    impacts-of-brexit-on-the-global-economy/#1155a6967b48 [Accessed 6 Oct. 2017].

    The Guardian. )2017). How has the Brexit vote affected the UK economy? August verdict. [online]. Available at:
    https://www.theguardian.com/politics/2017/aug/23/how-has-the-brexit-vote-affected-the-uk-economy-august-verdict [Accessed 6 Oct.
    2017].
    Citations (continued)
    Holmes, F. (2017). Forbes Welcome. [online] Forbes.com. Available at:
    https://www.forbes.com/sites/greatspeculations/2017/06/27/brexit-one-year-later-in-five-charts/#49c414752ee3 [Accessed 6 Oct. 2017].

    Hunt, A. (2017, September 26). Brexit: All you need to know about the UK leaving the EU. Retrieved October 5, 2017, from BBC:
    http://www.bbc.com/news/uk-politics-32810887

    INVESTOPIA. (2017). Why doesn't England use the Euro? Retrieved October 5, 2017, from
    INVESTOPIA : http://www.investopedia.com/ask/answers/100314/why-doesnt-england-use-euro.asp

    KERA. (2010, Jult 8). A Brief History of The EU. Retrieved October 5, 2017, from NPR:
    http://www.npr.org/templates/story/story.php?storyId=128389419

    Mauldin, J. (2016, July 5). 3 Reasons Brits Voted For Brexit. Retrieved Ocotber 5, 2017, from Forbes:
    https://www.forbes.com/sites/johnmauldin/2016/07/05/3-reasons-brits-voted-for-brexit/#713c6fc91f9d
    Ross, T. (2017). U.K. Business Says Brexit Already Having a Negative Effect. [online] Available at:
    https://www.bloomberg.com/news/articles/2017-02-06/u-k-business-says-brexit-is-already-having-a-negative-effect [Accessed 6 Oct.
    2017].

    The New York Times. (2017). How Brexit Could Change Business in Britain. [online] Available at:
    https://www.nytimes.com/interactive/2016/business/international/brexit-uk-what-happens-business.html [Accessed 6 Oct. 2017].

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