Question

The UK’s relationship with EU after the winning of the Brexitters is uncertain. UK will have to negotiate with EU member nations on almost everything, ranging from tariff to maintaining the most favored nation’s status.

1. Why and how would the two groups benefit in the long-term? (3-4 sentences)

2. Why and how would the two groups NOT benefit in the long term (3-4 sentences)

3. Which decision do you think is best economically and why?

Please provide 1 source to support your thinking.

Answer 1

Solution

On June 24,2016 the United Kingdom in a referendum decided to leave the European Union.This was popularly termed as " Brexit ".The majority of the Brits voted in the favor of Britain leaving the European Union.The majority of Brits believed so due to 4 main reasons - Immigration,Sovereignty,Jobs and Competitiveness

The Majority of Brits thought that exiting from the EU will ensure Sovereignty to Britain as it can take decisions,frame laws independently unlike before when being part the European Union.They also believed that by being part of EU they lost their competitiveness to the world by clubbing up with some countries in EU whom they believed to be very less competitive in comparison to them.They want to take advantage by coming out of EU.

1.UK will benefit from lower immigration,greater availability of jobs in it's market,better & effective & custom decision making,competitiveness of it's home market.

The residual EU will benefit from increased efficiency in functioning and decision making of reduced members in EU.EU continues to have benefits among their member countries but remove those benefits to EU.This will put their collective markets in advantage when compared to the UK.

2.The 2 groups will not benefit from this Brexit because the immigration laws become tougher than before (which may effect the dynamism and efficiency of their job markets) ; the trade laws & barriers will negatively their trade;they will loose their collective bargaining power with the rest of the world and the United States in specific.

Source: https://www.vox.com/2016/6/24/12025514/brexit-cartoon

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