Question

Exploring the EU.  

What do you see there that demonstrates economic integration and how it is achieved? What is the historical significance of Brexit?

Answer 1

1. Ans: EU is a political and economic assembled entity of 28 states that are called member states . It is based in Europe.

2.Ans: EU consists of 28 member states. Each member state is a part of founding treaties of the union.

3.Ans: Brexit is a term used for withrawal of UK (United Kingdom) from EU.

4.Ans: On 23 June 2016, 51.9% of the participating UK electorate voted in favor of exiting from the EU. On 29 March 2017, the British government invoked Article 50 from the EU Treaty thereby leading the UK paved the way to exit from EU by March 2019.

5.Ans: Prime Minister announced that the UK would not look for a permanent membership of a single market after exiting the EU.

6.Ans: Theresa Mary May

7.Ans:Brexit will occur by March 2019.

8.Ans: Not necessarily . There has been dispute since begining about UK being part or not part of European Union.

9.Ans: Short term impact is an immediate economic crisis as predicted by EU. However that was wrong. Athough growth of UK is sluggish still its economy is expanding.

10.Ans:The Brexit shall without doubt embolden other EU skeptic parties, especially the Eurozone core of the EU.The immediate reaction was a violent surpise in the financial markets however eventually it will calm down but leaving a matter of uncertainty.

Now,we'll talk about the Brexit's economic impact on Britain,the EU,and the World Economy;

As far as the UK is concerned, economy is expected to face challenges in the short term as well as long term with high levels of uncertainty leading to a slowdown in business investments and lower GDP growth.Brexit would be akin to a tax on GDP, imposing a persistent and rising cost on the economy that would not be incurred if the UK remained in the EU.By 2020, GDP would be over 3% smaller than otherwise (with continued EU membership), equivalent to a cost per household of GBP 2200 (in today’s prices). In the longer term, structural impacts would take hold through the channels of capital, immigration and lower technical progress. In particular, labour productivity would be held back by a drop in foreign direct investment and a smaller pool of skills. The extent of foregone GDP would increase over time. By 2030, in a central scenario GDP would be over 5% lower than otherwise – with the cost of Brexit equivalent to GBP 3200 per household (in today’s prices).Brexit would also hold back GDP in other European economies, particularly in the near term resulting from heightened uncertainty would create about the future of Europe.

For EU,losing such a big economy ,second largest in EU after, Germany,UK accounts for 12% of EU GDP will definitely have a significant impact.Brexit would leave the EU poorer and more afflicted by joblessness and low productivity than before.Also taking into account the UK's share of EU GDP is greater than its share of ,the EU's GDP will shrink without the UK ,making it smaller than that of US.Without the UK,the savings rates for EU will be higher.UK's large fiscal deficit has been a drag on EU average budget balance which will now have a view of recovery.Labour market will be weaker without the UK.

Fear of heightened uncertainty over Britain’s relationships with other countries will damage confidence and investment, at least for a few years after departing the EU.The impact of Brexit will vary depending on the terms of departure as well as on the prevailing economic climate.Brexit is an orderly process that avoids short-term turmoil and brings greater prosperity to British people in the medium term.

The concluding part is that leaving the EU is risky and will give the British economy a nasty jolt but, once a new relationship is forged, life will be neither better nor worse outside the EU.Once things got settled a clear preface will be visible.