Question

What is Brexit? How it effects the british economy? Advantages and disadvantages of brexit

Answer 1

Brexit

Brexit is basically used for united kingdom decision to pull out itself from European  union. European  union is the group of 28 countries ( Before Brexit ), who jointly its perform monetary and fiscal policies. It involves removal of trade barriers among member countries. In addition to this, there is common currency and monetary authority. Now, united kingdom decides to to pull out itself from European  union and perform its polices independently.

Brexit effects on the British economy

The following are some of the Brexit effects on the British economy:

• Inflation rate become unstable and tends toward increase.
• Adverser impact on per capita income of  British economy.
• Major decline in country GDP at least some years after the  Brexit.

From above point we can not conclude that, if there is everything wrong than why Brexit. We must consider that, above mention points are occur or expect to occur for some years after the Brexit. Some economist believed that British economy might get benefit from Brexit in the long run. But for the years after Brexit, British economy Adverser affect.

Advantages of Brexit

• More employment opportunities generate in British economy.
• Higher level of productivity experience by British economy.
• British economy domestic saving rate expected to be higher than it was during European  union.
• positive impact on the domestic manufacturer.

Disadvantages of Brexit

• British economy face trade barriers from the countries of European  union.
• British economy need to perform its monetary and fiscal policies independently.
• Possibly decline in GDP after some years of Brexit.
• Lower level of Investment inflow.