British Exit (Brexit) means the leaving of the UK from the European Union (EU). Its exiting has been pushed to the 31st of January 2020 to leave room for further negotiations between the trading bloc and the nation.
The British have given the following reasons for their exit:
● Undervalued currency
They feel that their currency (British Pound) was stronger when they were not part of the trading bloc.
● Standards undervalued
The nation feels that the services they offer are of high quality, and its association with the bloc undermines their standards.
● The British think that being part of the union brings them down, and they want to retrieve their previous glory.
These are some of the reasons they want to exit the EU. However, exiting has several impacts to the UK, most especially economically since their most robust relationship is through trade.
1. Trade and movement
The European Union is composed of 28 nations and over half a million prospective clients. As a result of Brexit, the UK will lose several trading associates and honor of untaxed trading. Due to Brexit, residents of the UK will have to acquire visas to travel to countries in the EU, which initially is not the case.
2. Structuring of relationships
If the UK exits the EU, the relationship between them must change. Discussions must be done to determine the new association between the two. The UK and the EU must establish a whole new relationship with entirely new policies and laws.
3. Currency variation
The British Pound is currently the strongest currency in the world. This, however, may change as a result of Brexit. The British pound will loose its prestige as the strongest currency due to the loss of shareholders and the prestige of free trading.
The current situation in the UK is uncertain until understandings are met with the EU and the UK. This leads to halting of the development of businesses till agreements are met hence delay in economic progression.
5. Economic migration
Initially, UK residents do not require visas to work in countries in the EU. If they exit the union, residents will be required to have visas to work in member countries as well as other official documents restricting job opportunities.
6. Transfer of businesses
Businesses that were initially set up in the UK by member countries may have to move to the EU or moved to the nations in the EU. This means that there will be a reduction in jobs in the UK. Many will lose their sources of income. However, other nations may be attracted to this opportunity since the UK will no longer be under the policies and laws of the EU.
Brexit will mean that corporations under EU taxation laws will have to put new ones in place to adhere to the policies. This will also affect the taxation of the whole nation because they will be working to rebuild their currency.
Currently, problems that deal with safety and security can be shared between members of the European Union and measures put in place to improve security. With its exit, the UK will no longer have the help of member nations.
The exiting of the UK from the EU has raised a lot of opinions about the nation. Some people view them as a strong and empowering country ready to regain its glory as an independent nation, while some have a negative notion that the move will lead to the fall of the country. These opinions will eventually lead to economic change. Those who have positive opinions will invest in the nation, bringing their businesses to the country, while those against it will withdraw their current businesses from the country.