Business Intelligence

 

Brexit and UK

What is Brexit? Well, Br means Britain (UK), and exit means leaving. It is referred to as Britain leaving the European Union. The referendum was held in June 2016, in which 52% of the population voted for Brexit.

Now, what is the European Union (EU)? It is an organization of 28 European countries that collaborate economically and politically. It gives the people of those 28 countries the freedom to move and work in any member states. It is more than just that, looking to the economy, they introduced a new currency Euro to be used in any of member states, and along with that, it strives with a mission to support every member country in times of turmoil and instability. The best example is the 1995 bankruptcy of Greece, in which all member states collectively pay of the loan of 90 billion dollars.

As we see the advantages of the EU, so why is there a referendum and the impacts? Well, the process is not sudden; it was a slow one covering a whole decade. UK had one of the veto powers in the UN, along with a strong economy and stability. Over the decade, the UK was in a constant state of supporting different member states instead of gaining something. Especially after the European refugee crisis, the influx of immigrants increases and poses a threat to UK stability, leading to Brexit's decision.

The Brexit deal had some key points to be observed. The first one is the border control to be implemented, especially between Ireland and the UK. The second one is the demolition of the Euro to be used freely. The third is the most drastic, and it was the imposition of taxes. This all would have to be done over the time frame of three years until 31 January 2020 but is delayed due to some political instability and then Pandemic.

Coming towards the advantages and disadvantages, there are odds on both sides. Now advantages include capitalism of trade and individuality in an economy like the USA and Japan. Protection of sovereignty as it stops the inflow of migrants from European countries. The most formidable advantage is that now it didn't need to contribute to any of crisis of Europe. The advantages seem good enough, but the disadvantages cannot be neglected. These include restriction to access the combined European market and customer, and business inflow, especially in this Pandemic Britain is alone as of other EU countries battling together. There is a significant effect on the goods inflow and outflow as the majority of investors draw out their money from the private sector along with the imposition of taxes the ordinary person is crumbling to pass through.

Brexit may be a good decision for some in the UK and Europe, but it is evident that the majority is affected by it in both Europe and the UK. The long-run may stabilize as it seems, but in this overhaul time, it didn't seem promising, especially when a common person is suffering due to this in many aspects, from wealth to tourism.