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The Economic Consequences of Brexit

Autor:   •  January 25, 2017  •  Research Paper  •  615 Words (3 Pages)  •  857 Views

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The impact of “Brexit” on British economy

Maastricht University

School of Business & Economics

Place & date:

Maastricht, 15.11.2016

Surname, First name:

Krall, Marius

For assessor only

ID number:

I6141888

1. Content

Study:

Economics and Business

2. Language structure

Course code:

Ebc1009

3. Language accuracy

Group number:

39

4. Language: Format & citing/referencing

Writing tutor name:

S. Hiley

Writing Overall:

Writing assignment:

Short writing assignment (Task 1)

Writing advisory grade:

Writing assessor’s initials:

Your UM email address: m.krall@student.maastrichtuniversity.nl

On June 23rd, a referendum on the United Kingdom’s EU membership took place and it ended with 51,9% of people voting in favour of leaving the EU. This short paper is going to deal with the economic consequences of the British exit (referred to as “Brexit” in the following paper), especially its consequences on trade.

First of all, the Brexit could noticably influence British trade, as 48,4% of the British exports have its destination in the European Single Market. This is nearly the same extent of trade as with non-EU countries. In total, British exports to the EU have had a trade volume of 88,9 billion British pounds. The question about the impact of the Brexit on British exports depends on several aspects. If the UK manages to maintain its trade contacts with the EU, there will not be a big cut in British exports to the EU. However, if a “hard” Brexit will take place instead of  “soft” Brexit, many contracts will need to be negotiated completely new with worse trade conditions for the UK than before. In addition, negotiating new contracts would take a lot of time, during which exports could be cutted rapidly. To sum it up, a “soft” Brexit would influence British exports to the EU much less than a “hard” Brexit woud do.

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