Brexit and its Issues : 663879

Question:

• An introduction (150 words) [use evidence/research throughout]
• What is your trade organisation? Why is Brexit of interest to them?
• Include some detail on the topic (narrow your focus; what exactly are you focusing on?) Who are the key ideas/people involved/organisations etc.?)
• What will your report show? Be specific [you could write this section last]

• Discussion point 1………………………………… (300 words) [Use evidence/researchthroughout]
• Identify one point from your area of focus and say why it is a key issue.
• Describe how leaving the EU will impact on this
• What are the opportunities it could create?
• What are the possible problems?
• What can you conclude from this? What are the implications?

• Discussion point 2………………………………… (300 words) [Use evidence/research throughout]
• Identify another point from your area of focus and say why it is a key issue
• Describe how leaving the EU will impact on this
• What are the opportunities it could create?
• What are the possible problems?
• What can you conclude from this? What are the implications?

• Conclusion (150 words) [refer back to key evidence/research]
• Include a full reference for all the sources you have cited in your text.

*You can find more guidance regarding this topic (including reading lists) on GSM Learn

Answer:

Introduction

Brexit simply refers to the decision of Britain to move away from the European Union and act in solitude. Britain on 23rd June 2016 underwent a voting process which saw the nation decide on entering into an agreement of leaving the European Union. The decision acted as a surprise to many as the move carried along serious consequences as well as a promise to the great nation. The exit from the European Union means a lot as the nation would be forced to make its trade and economic policies as opposed to the previous state where the Union controlled much of its activities. The decision to stand alone has economic, legal, and political consequences to the nation as it affects its policies as well as a future relation with other countries under the European Union. The paper researches on the effects of the Brexit move on Britain detailing the benefits and setbacks that might be experienced in the process.

Trading

The British retail consortium (BRC) is a trade association in the UK. The Brexit deals according to the BRC could have an impact on the trading contract. This would mean the UK would have to create its trade policies and import regulations. Leaving the EU, however, staying in the Single Market in the food and farming industry would require the UK to be liable to EU law abiding guidelines with no official part in choosing it.

On the other hand, this could create an opportunity for Britain to create a better self-policy trade validation. There could be a possibility of improved opportunities within the trading segment in the Marketing industry for employers to develop and enhanced growth in their business.

The possible problems of Brexit leaving can lower the wages of British farmers by the Common Agricultural Policy (CAP),55% of UK total income from farming comes from CAP support –EU’s policy to provide financial assistance to farmers (Emily Gosden and Marion Dakers, 2016).The trade organization GfK is the largest market research institute owned by Germany. Brexit is of interest to them as it resulted to their Consumer Confidence index to decrease to -8 during the following up to Brexit in November 2016, it has reached to -10 in the last research in June 2017 (Hemsworth, 2017).

Concluding from this, if Brexit results to leaving the EU then the British retail consortium would face the consequences in having its terms and condition within the trading policies of the marketing industry thus, Britain would be on its facing British farmers who may struggle with the EU’s CAP support. The implications of this as a whole could drop The Financial Times-Stock Exchange potentials of the nation.

Immigration affecting employment

The exit by the nation from the European Union spells both benefits and demerits for the nation. The exit comes with new rules on immigration where the nation has to develop a charter on the free flow of people in and out of the nation. As a member of the European Union, free flow of goods and people within the member states was a guarantee where individuals could securer job opportunities within the member states (Ottaviano, Pessoa, Sampson and Van Reenen 2014). However, the exit brings in a new scenario where restrictions could be placed in altering the previous state of affairs.

Benefits

Proponents to the exit cited the need for the nation to develop its immigration policies as the number of immigrants coming to the country increased thus leading to several social issues. Moreover, the limited job opportunities within the nation saw a scramble by the immigrants leading to competition with the locals (Mendez-Parra,  Papadavid and te Velde 2016). Therefore, there was a need to restore sanity and the nation to have a control on the immigrant issue to the nation. The factor brings a favourable situation to the locals as the jobs would remain intact and bring a future promise to the growing population (Sampson 2017). At the same time, the nation would stay in control of its policies and better plan for its people.

Demerits

The situation denies immigrants the free flow of employment experienced in the earlier case. As such, the nation remains deprived of the bright minds and the benefits realized in the exchange of brains within the member nations. Besides, moving out of the union would toughen job opportunities for its citizens working in other nations within the union and thus cause a significant drop in the revenue realized in their home countries (Kierzenkowski, Pain, Rusticelli and Zwart 2016). Moreover, fewer business ties with the nations would lead to reduced employment for the locals who enjoyed the presence of free goods and services from the union members. As such, the nation would have to dig hard to return to its previous economic possession and a distant relation with the neighboring countries. Despite the challenges, the situation would open further ties with other nations thus balancing the situation while allowing the nation control over most of its policies.

Freedom to go out of the Common Agricultural Policy

As a member of the European Union, the nation was under the agricultural policies that tied its operations involving the importation and export of farm products. In the present state after exit, the nation is free to present its exports to the best market with a promising price and select to import from producers with the best quality and prices. To some extent, the outsourcing of labor was restricted as the member states promoted employment within the union to guarantee a stable growth while advocating for higher pays within member states.

Positive Benefits

In this case, there would be reduced inflation as the nation would buy for less and sell at competitive prices thus building the poor in the society. The lack of restriction would further assist the nation to explore other trade ties with nations such as China and America that would significantly boost its economy and employment aspects (Harvey and Hubbard 2016). Expansion in business with other nations such as China would bring many benefits to the nation and expand its market to the growing economy in the Asian markets. The existence of the trade ties meant a reduced engagement with nations outside the union despite them offering the best prices in the market (Wadsworth, Dhingra, Ottaviano and Van Reenen 2016). Members were restricted to purchasing from within the union; a fact that led to low returns for the nation in some cases.

Negative

Britain stands to lose in the short term from the trade ties it had within the union as well as members as there would exist a strained relation between the nations. Nations within the union would be cautioned against trading with Britain due to the exit move (Welfens 2017). As such, the economy of the nation would remain hard hit in losing billions of pounds earned from trading. Further, the existing policies and tariffs that existed earlier would be deprived thus making it expensive to trade with some of its neighbours within the union.

Conclusion

The Brexit move comes with an equal share of blessings and demerits to the great nation. While the nation might be gaining from freedom, there are specific areas that the nation might lose as the unit comes with a great benefit to its members. However, the nation is prepared to set its policies in trade and immigration that would assist the nation forge ahead and restore its glory after the exit. Since the move was passed by a majority of its people, it is bound to succeed as the thoughts and decisions were made after careful considerations.

References

Emily Gosden and Marion Dakers (2016).What would Brexit mean for farmers and the Common Agricultural Policy?. [online] The Telegraph. Available at: http://www.telegraph.co.uk/news/2016/06/13/what-would-brexit-mean-for-farmers-and-the-common-agricultural-p/ [Accessed 5 Dec. 2017].

Harvey, D. and Hubbard, C., 2016. Why Brexit. Centre for Rural Economy Discussion Paper Series, (35).

Kierzenkowski, R., Pain, N., Rusticelli, E. and Zwart, S., 2016. The Economic Consequences of Brexit.

Mendez-Parra, M., Papadavid, P. and te Velde, D.W., 2016. BREXIT and development. Retrieved from, 10381(10570), p.15534.

Ottaviano, G.I.P., Pessoa, J.P., Sampson, T. and Van Reenen, J., 2014. Brexit or Fixit? The trade and welfare effects of leaving the European Union.

Sampson, T., 2017. Brexit: The economics of international disintegration. Journal of Economic Perspectives, 31(4), pp.163-184.

Wadsworth, J., Dhingra, S., Ottaviano, G. and Van Reenen, J., 2016. Brexit and the Impact of Immigration on the UK. Centre for Economic Performance. LSE, pp.34-53.

Welfens, P.J., 2017. An Accidental BREXIT. presentation at Georgetown University, 12.