This essay seeks to discuss the impact Brexit is likely to have on both UK and Europe. The essay will be divided into three sections. Section one will discuss briefly the journey to the formation of the EU, then continue with UK’s membership in 1973 and discuss events that occurred after gaining membership. The section two will discuss five probable impacts UK is likely to face in the post-Brexit era. It will discuss the change of trade within Europe, the new posture trade is likely to take as a result of new trade policy, effect Brexit is likely to impact on financial services, the tightening of immigration, and UK’s loss of influence in the international world. The third section will discuss the effect of Brexit on Europe. It will discuss business finding it costly to relocate investment from UK, how Brexit will affect remittance migration to the extent of political contagion, how Brexit is likely to create a gap in the budgetary of the EU, the effect Brexit is likely to take EU’s influence in the international world and how Brexit breeds uncertainty which is bad for business in the EU and risks political contagion.
Table of Contents
1. Introduction
2. The Path to European Cooperation
3. Trade Policy
4. Finance
5. Immigration
6. International Influence
7. EU Impact
Objectives and Themes
This essay aims to provide a comprehensive analysis of the potential impacts of Brexit on both the United Kingdom and the European Union. It examines the historical context of the UK’s EU membership, the economic and political implications of withdrawal, and the various future relationship models available to the UK, while considering the broader consequences for European integration and international standing.
- Historical evolution of UK-EU relations and membership.
- Economic analysis of potential post-Brexit trade arrangements.
- The impact of Brexit on financial services and supply chains.
- Consequences of altered immigration policies and labor market dynamics.
- Shifting political influence and geopolitical implications for Europe.
Excerpt from the Book
FINANCE
The high ratio of gross trade relative to the value added suggests that much of the UK’s trade is connected to global supply chains. 41% of the value added in its exports comes from the EU and 12% from the US. The importance of the UK in the international supply chains is particularly concentrated in some sectors. The UK’s financial services and professional services industries, exports in mining and chemical products, transport, telecom, as well as wholesale and retail sectors, are very important to international supply chains (Brexit Monitor). However, after the UK leaves the EU, current global supply chains for the EU market may need to be rebalanced. Uncertainty about trade policies and their effect on trade between the UK and the EU may impact investments in the supply chain footprint (Brexit Monitor). Companies making strategic capital investment decisions about warehouses, factories or logistic capabilities, would normally consider the UK as location. Pending the uncertainty after the Brexit negotiations, these decisions may be postponed. Decisions that cannot be postponed may instead become biased in favor on non-UK locations. In supply chain management, companies frequently calibrate the cost levels versus service levels of one’s nodes in the supply chain. If transaction costs of trade becomes too high, companies may reconsider their current or planned locations in the UK (Brexit Monitor).
Summary of Chapters
1. Introduction: This chapter outlines the scope of the essay, detailing the planned three-section structure that covers the history of UK membership, probable impacts in the post-Brexit era, and the wider effects on Europe.
2. The Path to European Cooperation: This section reviews the post-WWII origins of European cooperation, the formation of the ECSC and EEC, and the long-standing tensions in the UK's relationship with the European project leading up to the 2016 referendum.
3. Trade Policy: This chapter analyzes the dependency of the UK economy on the EU, discusses potential trade models such as EEA or WTO-style relationships, and evaluates the fiscal challenges of post-Brexit trade regulation.
4. Finance: This section examines the integration of the UK into global supply chains and the potential for financial services relocation, emphasizing the risks that uncertainty poses to capital investment and market stability.
5. Immigration: This chapter explores the contentious politics of migration, the economic benefits of free movement for high-value industries, and the potential impact of tightening borders on labor markets and remittances.
6. International Influence: This chapter assesses the potential decline of the UK's geopolitical standing and soft power, both within the EU and on the global stage, following its departure from the bloc.
7. EU Impact: This final chapter discusses the repercussions for the remaining member states, including budgetary consequences, the risks of political contagion, and the potential for a shifted investment climate within Europe.
Keywords
Brexit, European Union, United Kingdom, Trade Policy, Financial Services, Immigration, Sovereignty, Economic Impact, Political Contagion, Supply Chains, Single Market, Referendum, FDI, Integration, Fiscal Policy.
Frequently Asked Questions
What is the fundamental purpose of this paper?
The paper provides a detailed discussion on the likely economic and political impacts of Brexit on the United Kingdom and the European Union, structured through a historical and analytical lens.
What are the primary themes discussed in the work?
Central themes include the history of UK-EU membership, trade relationships, the stability of financial markets, migration patterns, and the shifting balance of international influence.
What is the main research objective?
The objective is to explore the various consequences of the UK's decision to leave the EU, analyzing both the direct domestic effects and the broader ramifications for European institutional stability.
Which scientific methods are utilized?
The paper employs a comprehensive literature review and policy analysis approach, synthesizing economic data, political theories, and institutional reports to evaluate the multi-dimensional impact of the Brexit process.
What is covered in the main body of the work?
The main body covers the evolution of the EU, specific sectors like finance and trade policy, the social and economic implications of migration, and the political budget considerations for the EU post-Brexit.
Which keywords best characterize the research?
Key terms include Brexit, European Union, Trade Policy, Financial Services, Immigration, and Economic Impact.
How does the author define the difference between a "Hard" and "Soft" Brexit?
A "Hard" Brexit involves leaving the Single Market and Customs Union to regain full border control and autonomy over laws, while a "Soft" Brexit aims to maintain as close a relationship as possible to the existing arrangements, similar to models seen in Norway or Switzerland.
What does the text suggest regarding the "Brexit gap"?
The author identifies a potential structural shortfall in the EU budget of approximately €10 billion per year, which would necessitate either increased contributions from remaining members or significant reductions in EU spending.
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- Esther Onomah (Autor:in), 2018, Effect of Brexit on the European Union and the UK, München, GRIN Verlag, https://www.grin.com/document/509721
