Brexit

Arish Nota, Andrea Lara, David Suggs, Michael

Leung, Sohaib Anees, Shahana Shaikh, Stephen
Davis.
History of the E.U.
Europe post WWII
1973: Great Britain joins European alliance
1993: Formation of the E.U.
1999: Introduction of the Euro
What is Brexit?
June 2016: British citizens vote to leave the E.U.
52% voted in favor of leaving
Triggered immediate economic changes
March 2017: 2 year process initiated
2 years to negotiate new terms between U.K. and E.U.
March 2019: U.K. will no longer be a part of the E.U.
Effects on Great Britain

Pound Value dropped within 24

hours of vote
1.475 to 1.325 Dollars per Pound
U.K. stock market rose
More Pounds per Dollar
Exports increased
Reduced trade deficit
Effects on Great Britain Continued

Decreased imports, and raised prices on imported products

Higher rate of inflation
Decreased rate or wage increase
Less spending
Drop in immigration
50k less people moved to the U.K.
U.K. residents and foreign workers left
House price growth decreased by 50%
Avg 4% growth per year prior to June 2016
Effects on the European Union
Import from UK will increase

Countries such as the

Netherlands,Belgium, and Ireland will
have a downturn in terms of trade.

May cause recession within few EU

countries such as Netherlands,Belgium,
and Ireland.

Businesses(corporations) would
transition from Britain to the EU.
Effects Internationally
Due to the drop in value of the
pound, countries now have more
purchasing power when doing
business with Britain

Imports increased which would

make Britain hesitate to import
materials or services from other
countries
Effects Internationally Continued
Likely to leave a gaping hole
of about 9 billion annually.
Due to its loss of trade, services,
and FDI
Negatively impacts UK more than
it does EU
Companies will push capital
out of the U.K. to safe havens
like the United States and
Japan.
Empowers U.S. Dollar and
Japanese Yen
Negatively impacts exports.
Negatively impacts emerging
markets.
Opinions on Brexit
Too early to tell the true effects on the UK
The immediate effects dont seem so bad with the stock market rising
In the long run Investors may pull out
Inflation may get out of hand
Other European countries seem to be more radicalized
France may follow suit and leave the EU along with Italy
Austria elects a more radical leader
The EU may crumble all together
The US has benefited temporarily by taking advantage of the low pound
40 percent of US firms with offices in the UK are now considering relocating to EU
countries
Citations
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Bowler, T.. (2017). How has the economy fared since the Brexit vote? [online] Available at: http://www.bbc.com/news/business-
36956418 [Accessed 2 Oct. 2017].

Emerson, M. (2017). An Assessment of the Economic Impact of Brexit on the EU27. [online]. Available at:
http://www.europarl.europa.eu/RegData/etudes/STUD/2017/595374/IPOL_STU(2017)595374_EN.pdf [Accessed 6 Oct. 2017].

Euro Dollar Currency . (2012). History of Euro. Retrieved October 7, 2017, from Euro-Dollar-Currency: http://www.euro-dollar-
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Forbes.com. (2017). Forbes Welcome. [online] Available at: https://www.forbes.com/sites/baininsights/2016/06/29/the-potential-

impacts-of-brexit-on-the-global-economy/#1155a6967b48 [Accessed 6 Oct. 2017].

The Guardian. )2017). How has the Brexit vote affected the UK economy? August verdict. [online]. Available at:
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2017].
Citations (continued)
Holmes, F. (2017). Forbes Welcome. [online] Forbes.com. Available at:
https://www.forbes.com/sites/greatspeculations/2017/06/27/brexit-one-year-later-in-five-charts/#49c414752ee3 [Accessed 6 Oct. 2017].

Hunt, A. (2017, September 26). Brexit: All you need to know about the UK leaving the EU. Retrieved October 5, 2017, from BBC:
http://www.bbc.com/news/uk-politics-32810887

INVESTOPIA. (2017). Why doesn't England use the Euro? Retrieved October 5, 2017, from
INVESTOPIA : http://www.investopedia.com/ask/answers/100314/why-doesnt-england-use-euro.asp

KERA. (2010, Jult 8). A Brief History of The EU. Retrieved October 5, 2017, from NPR:
http://www.npr.org/templates/story/story.php?storyId=128389419

Mauldin, J. (2016, July 5). 3 Reasons Brits Voted For Brexit. Retrieved Ocotber 5, 2017, from Forbes:
https://www.forbes.com/sites/johnmauldin/2016/07/05/3-reasons-brits-voted-for-brexit/#713c6fc91f9d
Ross, T. (2017). U.K. Business Says Brexit Already Having a Negative Effect. [online] Available at:
https://www.bloomberg.com/news/articles/2017-02-06/u-k-business-says-brexit-is-already-having-a-negative-effect [Accessed 6 Oct.
2017].

The New York Times. (2017). How Brexit Could Change Business in Britain. [online] Available at:
https://www.nytimes.com/interactive/2016/business/international/brexit-uk-what-happens-business.html [Accessed 6 Oct. 2017].