Essay on Brexit
Document Type:Research Paper
9% voted in favor of leaving the union which the country had been a member since 1973 (Dhingra et al. At that time it was known as European communities (EC). The union gave the twenty eight member states a bargaining power and other benefits. However, the idea of allowing immigrants from Syria and other countries was supported by the union but was not bought by the Britons. The exit of Britain from the European Union is an important issue because it highlights the cause of the decision and the extent to which the nation wants to go to ensure what they believe as a country is not undermined by an external commitment. Most of the voters that advocated for staying in the union came from the northern parts of the country while the south voted for the exit (Hobolt 509).
Additionally, the younger voters never wanted to leave but they were outnumbered by the older generations. Some people felt that they had done a mistake and therefore, a petition was arranged that requested for a second referendum. Four million signatures were collected across the country but the government rejected it. The referendum had a number of effects. The literature done on the EU agreement shows that leaving the union would create trade barriers that had initially been removed by the European Union (Goodwin et al. That would cause the trade with other European countries be hard. United Kingdom heavily depends on international trade, therefore such barriers would cost the country a lot of money. It is estimated that it would cost between 1 and 10 percent of the country’s per capita income reduction.
This figure fluctuates depending in the aftermath deal the country would negotiate. However, if the government intends to increase the wage level in the country, they would have to consider the wage rates of other equally potential countries. If the wage rate is increases excessively, companies can migrate to other countries where there are huge profit margins. The migration policy will favor them in terms of security. The openness of the borders of the member countries make them susceptible to terrorism and organized crime. The Brexit had an immediate effect on the stock and forex markets. The UK wanted a custom union with the European Union but goods from other countries would face import taxation. The second thing was that even though United Kingdom excluded itself, trading with the European Union member countries would not be disrupted.
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