IMPACT OF BREXIT ON UNITED KINGDOM
Document Type:Research Paper
The reason for UK exit was anchored on the issue on economic gains whereby it claimed that EU was behind the kingdom's slow growth after the 2008 recession (Amstrong). Many of these sentiments were being said by the politicians who were supporting UK's exit from the EU rather than economists, and they managed to sway the people to agree with their agenda. The predictions of immediate doom for the UK were wrong since, the Kingdom witnessed a growth of 1. 8 in 2016, as such, there was just a little shake-up. Going forward is where many people's mind has been attuned to; the day after Friday 29 March 2019. For instance, in the banking sector, the loss of passporting rights will immensely have an impact on many of the banks in the UK.
Since the UK joined the EU, cross-border trading intensified, and this facilitated the cross-border banking services that many of the UK banks now fear will have a negative impact (Dhingra, Ottaviano and Sampson). Many of the non-UK citizen that could be owing to the UK banks some money will rejoice since cutting ties with the country means that nobody from the UK will come looking for them in their country. As the UK banks will be left to clear the debts something that might, in turn, threaten the stability of the banks in the market. The cross-border banking services represent a high percentage of activities of the UK banks which are based on the legislation of EU. Britain used to be earning approximately 400 billion pounds from the EU annually by trading with EU that covered almost 50% of the country's business; now that will not be there.
A survey conducted by the powerful executive firms in Britain has revealed that many businesses were hurt by the Brexit and they predict that the impact will be severe in days to come and many industries are likely to take a hit. The housing industry also will suffer a hit; there will be price growth in houses and housing transactions, and as such, this will have an implication on the existing and aspiring homeowners. The extent of the impact is being felt gradually, and thus, it will take some time for the impacts to become clear and this will also help dependent on how the economic uncertainty will have an effect on these sentiments particularly in the short-term basis. Depending on the market activities, laws, exports, and import and the immigration levels after the exit, will determine how the housing industry will fair in the UK.
But as much as that is the case, the UK citizens still dominate the workforce thanks to the job opportunities created by the migrants. As such, due to the Brexit, the movement of commodities and people to the UK may be restricted; one may be required to produce necessary document to allow him, or her enter UK and thus, this will hinder continued growth of the UK economy. Security is also another area that the UK is likely to loose on if the Brexit process goes through or is rather completed. The world has changed very much and the period that we are operating in today is one that is coupled with a lot of uncertainty thanks to the many political issues that seem to be surrounding every matter that needs urgent attention.
This not only applies to the third world countries but also the first world countries such as Britain and USA who are now even under a lot of threat due to their involvement in peace missions in countries that have been ravaged by war and terrorism. The realization of profits and maintaining of presences from other countries will automatically become costlier and more difficult for UK. Tourism will certainly become pricier, and students will also consider joining other higher learning institutions located within the EU member countries. The UK Airline Industry will also be affected by the Brexit in the sense that the number of passengers traveling to the UK will be reduced. The Airlines, on the other hand, can feel a little of the pinch since most of them have the permits that allow them to operate across several countries in Europe; EasyJet an airline company that is only certified by UK and Swiss is among the few airlines that will bear the heat of Brexit.
The European officers have asked many of the airlines that are based in the UK to relocate before 2019 to continue their operations in the future (Ford and Goodwin). There is the thought that some countries that are very much allied to the EU will decline to trade with UK as a show of solidarity or rather they will make it difficult for UK to conduct its trading business. Also, the idea of restricting movement will between Britain and the EU will be of benefit to the UK if referring to immigration and a loss to the country if referring to entrepreneurs, academic staff, and the professionals. Besides that, the Brexit will create a severe obstacle to the integration of EU as some member state may start issuing threats of exiting.
Through Article 50 of the Treaty of Lisbon, the EU has made it a little bit difficult for UK to exit and this is evident in the many debates that are going on that are aimed at making sure that UK gets a fair deal of when exiting. That will also serve to teach other member countries might be planning on leaving the EU. Brexit Time. Cambridge: Cambridge University Press, 2017. Begg, I and F Mushovel. "The Economic Impact of Brexit: Jobs, Growth and the Public Finances. " London School of Economics (2016): 1. Cox, J and B Chu. "Cost of Brexit: The Impact on Business and the Economy So Far. " The Independent (2017). Available at: http://www. independent. "What is Brexit and What is Going to Happen Now that Britain has Voted to Leave the EU.
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