Free trade Being part of the EU ensures that each member has free trade between all its member states. This is a great advantage for the UK and its businesses because it leaves them with no worry about import taxes or quotas. One of the main benefits of the European union is that it’s our main trading partner ,and membership of the EU has helped reduced both tariff and non- tariff barriers. According to sources, Half of the UK’s exports go to the EU (Shattock, 2013). As their main trading partner .If the UK was to leave the EU , it would be faced with the iron tariff wall that non-members face. This would destroy Britain’s Aggregate demand tremendously. Leaving the EU, could put the UK in jeopardy as it is an important aspect of the economy. Euro sceptics and the UKIP believe that even if we leave the EU, the UK’s free trade agreements can still be maintained due to the fact that countries such as Switzerland and Norway haven’t been excluded from EU agreements (Pettinger, 2013). However, it could be argued that France, Germany among with the rest of the main EU leading nations would never allow Britain a "pick and mix" approach to the bloc's rules (Peter, 2013) They also argued that Britain should rely on the membership of the World Trade Organisation to give access to markets. But, although the World trade organisation has indeed made a lot of progress with trade, it hasn’t secured free trade in manufacturing or services which do account for mostly all of the UK’s GDP. Also, if the UK left the EU, Britain would be opening up their markets to some of the world’s biggest economies such as China or Japan, more than they would open up theirs to Britain. This means, that Britain would be a minor under all these large economies a... ... middle of paper ... ... the UK and also announced the start of a new car which is supposed to create 400 more jobs at the Sunderland plant and 1,600 jobs in the supply chain (Ahmed, 2013). This would only boost the UK economy more. The main issue which might be restricted if the UK leave the EU is the right of UK citizens to work and live in other EU member states. Would all non-EU citizens have to migrate back to the UK? What would also happen to the thousands of jobs they would all have to leave behind? Immigration might have a lot of negatives, but do the negatives outweigh the positives? . Immigration has done very well for Britain. Being in the EU has made it easier for tourists to spend money which drives up the UK’s aggregate demand and boost the economy tremendously, it also has mad the UK a more attractive country for skilled workers such as engineers and doctors (Shattock, 2013)
The European Union has been helped economically ever since World War II. Right after World War II’s end, Europe was struggling to hold on. The countries of the modern-day European Union thought it would be a good idea to come together and help each others struggling economy. To this day, this decision has had a very positive outcome on the EU’s economy. As shown in Diagram 1, the European Union combined together has the world’s highest GDP at 18.3 Trillion USD as compared to the United States’ 17.4 Trillion USD GDP and China’s 10.4 Trillion USD GDP. The idea
Well according to the Institute of Economic Affairs, if the United Kingdom leave the European Union the economy would not be affected as the Government can negotiate a way to keep some freedoms in place like movement of goods. The Institute also claim that Britain is one of the least regulated economy in Europe as a result business would still locate their company to Britain as it is easy to operate in Britain compare to the rest of Europe and also because of the trade surplus it has with other countries in the Union, the economy would not suffer any damages (Pycock 10-16).The economy of the United Kingdom is in a better position if it leaves the EU, and According to the Telegraph " The United Kingdom will be the second most successful economy in the world"(Holehouse). According to the two sources Britain could actually benefit leaving the European Union as it would be free to trade with other major countries like China, India, and Brazil. As a result the United Kingdom could position itself as a premier destination to invest and start operation in and also a stepping stone to the European market. But the according to the the Centre of European reform, the economy will suffer if the UK leave the Union as there are about 4-6 million jobs that are directly related to the Union (Springford. et.al 28). The Government cannot afford to lose that many jobs because that mean the Government would lose millions in tax money as a lot companies would move to other countries. Because the United Kingdom is typically chosen to be the first country as their starting base if they want to do business with the EU. The two claims contradict heavily as the IEA base their report that the UK can use its economic size as leverage, While CER 's claim that the UK location and also it
... E., (2005) Should Britain leave the EU?: an economic analysis of a troubled relationship. 1st ed. Cheltenham: Edward Elgar Publishing Limited
In addition to that, job issue is also a significant problem. Although controlling immigration will create more job opportunities for local English people, leaving UK will also result in losing over three million job opportunities in general. Behind these figures, it means not only British people will not gain more jobs, but also
It is for sure that the UK and the other EU would be directly or indirectly affected by Brexit. According to a survey, it is found that many businesses in UK are already worried about the
As Ian Fletcher pointed out in Free Trade Doesn’t Work: What Should Replace it And Why, nations need a well-chosen balance between openness and closure toward the larger world economy (Fletc...
Without a UK vote, the centre of gravity in the remainder EU is likely to be more protectionist, which could affect UK 's trade terms.
When the UK finally joined the EEC (now known as the European Union) in 1973, a majority of the nation were in full support as the referendum suggested, however over time, there has been debate as to whether being part of the European Union is indeed best for the UK. Whilst it seemed like a good idea at the time, nowadays the reasons for joining no longer seem as valid as they once were. The UK, some argue would be better off no longer being a member of the European Union.
On the other hand, UK is playing a major role in the single market. Thus, by leaving this market, UK
Immigration should be widely accepted rather than looked at as a problem. Economically, immigrants greatly boost the economy by providing new job opportunities, more money to companies, and reducing the unemployment rate. A large influx of immigrants will help many companies because of supply and demand, more people equals more needs to be provided. With the average immigrant worker working at lower wages, immigrants reduce the amount of money a company loses when paying their employees.
Free trade can be defined as the free access of the market by individuals without any restriction or any trade barriers that can obstruct the trade process such as taxes, tariffs and import quotas. Free trade in its own way unites and brings people together. Most individuals love the concept of free trade because it gives them the ability to move freely and interact in the market. The whole idea of free trade is that it lowers the price for goods and services by promoting competition. Domestic producers will no longer be able to rely on government law and other forms of assistance, including quotas which essentially force citizens to buy from them. The producers will have to enter the market and strive into to obtain profit.
This event has been drove by the concerns of currency traders who subscribed to the possibility that Brexit might implicate permanent damage on the Britain's economy. This assumption however has been counterfactual as Britain's economy is strong enough to prevent sudden collapse despite temporary jitters. Ever since then, the pound has been traded around 15 percent lower in comparison to the dollar and 12 percent lower when compared with euro. Although it results in domestic inflation that rises faster than workers’ wages, it proved to be be a beneficial economic boon for UK exporters due to the soaring cost of imports. This is a crucial key factor for the automotive industry in particular, where vehicles which may be completed in the UK are often comprised of imported component parts. As a matter of fact, automotive industry is considered the most vulnerable sector in the advent of Brexit because of its global exposure and heavy dependence on foreign workers. Though , both imports and exports in the UK has been boosted by weaker pound as currency strategists pointed that sterling shall remain volatile until greater clarity about the UK’s Brexit deal is
The main arguments to leave are to control immigration, reject the excessive bureaucracy (and associated cost) of Brussels and to lower prices for goods and services in the United Kingdom. I will focus on the economic argument to leave: leaving the European Union will save money by lowering prices and abstaining from "membership fees."
China’s economical strength comes from its international trades as the economy has grown to a rate of 10.3% in 2010. It has become the world’s largest exporter in the global economy. In the area of trade, three major strengths of China are 1) it is the single most important challenge for the European Union (EU) trade policy, 2) China is the second trade partner behind the U.S., and 3) it is the EU’s biggest source of imports by far with the dramatic increase in the EU-China trades over the recent years. The EU exports of goods to China were 113.1 billion Euros and in imports was 281.9 billion Euros in 2010. The service exports were 18 billion Euros and in imports were 13 billion Euros in 2009. China has also established trades with Australia. Recently, the two countries have been cooperating and assisting each other in industries such as agriculture, energy and minerals as they continue their free trade agreements (Jia Qinglin).
would decline all its influence in EU rules, and it will stop following them, also the financial services passport will remain, but over time it values remain. Also Britain will contributes to EU budget, but will pay less, than countries in EU. But this scenario have few problems, first in that case Britain will have to get concessions not only in pro- migration Ester Europe, but also from France and Netherlands, , which do not want to set a precedent for anti-EU populists. Also, second problem, that it could be not enought for Britain. Because EU thinks, that they can find compromise, just then when it is on carefully limited migration curbs. And also, EU wants that Britain will be a rule-taker on the single market, and listen and follow EU on everything from financial services to digital policy. Also this scenario could be that , relations between Britain and the EU would be strained, but solid enought to agrre on tariff transition, and also agree trade terms. Also it is clear that Eu and Brtiain will not agrred on sovereignty or immigration, because the price is to high, and they will not find solution which will be good for both sides. But it is big chance that agreement on trading, will be successful, because if not both side will have