The Economic Development of Great Britain after Brexit
Nowadays, each country strives to improve its domestic and foreign policy and economy. Being a member of different political and economic organizations gives the country an opportunity to develop and cooperate in the economic sphere. However, not all countries have the desire to be members of international organizations. One of such countries is the United Kingdom (Baumol 3). This paper argues that the withdrawal of England from the European Union makes the United Kingdom economy more independent and influential in the world, because the United Kingdom is a country with a highly developed economy that has a leading position not only in Europe, but also in the whole world. The United Kingdom is one of the most important allies of the United States of America; it has an enormous influence and experience in political and economic life. The decision of the UK to stop its association with the European Union damaged the status of the European partnership. However, it opens the way for Great Britain's new role in the world.
Analyzing the article The British Economy If the Country Crashes Out of the European Union, it should be noted that the decision of Britain to leave the European Union was approved by the United Kingdom during the referendum in 2016 (The British Economy If the Country Crashes Out of the European Union). Britains withdrawal from the European Union is planned for 2021 (Baumol 6). According to the results of the referendum, the British selected to leave the European Union. Thus, on March 29, the United Kingdom publicly launched the process of the country's extraction from the EU. According to the situation set forth in Article 50 of the Treaty on the European Union, the United Kingdom will be able to leave the union on March 29, 2019, two years after the start of the Brexit. The referendum was preceded by a time of political and economic indecision (Baumol 7). One of the factors of the UK decision is the fact that several aspects of the UK's outside relations have existed, partially or totally, only within the European Union for a long time. Thus, it limited England's ability in the economic issue.
After leaving the European Union, the United Kingdom will be able to recover the direct management of external relationships between new countries, it will especially touch trade and economic areas. According to the article, it will be possible to maintain trade and economic associations in conditions of improbability for some time, as they will have to expand trade agreements with all partners of the European Union separately (The British Economy If the Country Crashes Out of the European Union). After the discharge of the UK from the European Union, The World Trade Organization rules will be functional to establish and introduce duties; as a result, it can surely be asserted that the level of these responsibilities will not be more complicated than those standard rules for all countries belonging to the European Union (Hill 12). The UK will have an opportunity to initiate new economical agreements with non-member states right after leaving the European Union. The main economic issue of the article is that the UK plans to leave the European Union and operate independently in the economic and political spheres (The British Economy If the Country Crashes Out of the European Union). For many years the United Kingdom has been part of the European Union and is one of the leading members of the organization. According to the concept of Supply, Demand, and Price, the coordination of new trade agreements can be started in two years after the announcement of the states wish to withdraw from the European Union with a vision of their admission into power soon after the date of withdrawal (Hill 10). Currently, the European Union has several economical arrangements on free trade applied to Great Britain, which is still the European Union partner. Most of these agreements are with small increasing states, and only a small number of them correspond to major export markets of Great Britain.
Both the European Union and the Member States, together with Great Britain, are parties to these agreements. After leaving the EU, the UK can continue to relate to the substantive terms of these agreements on a mutual basis if the counterparty state does not oppose. So far, it can barely be argued that counterparts will not be against, since this would transform their export materials to the UK, which is presently duty-free, for the obligation of new tariffs (Hill 10). Thus, there will be no need to revise these accessible agreements.
The article discusses the argument that the exit of Great Britain from the European Union will primarily harm Great Britain as this will affect several economic spheres (The British Economy If the Country Crashes Out of the European Union). I agree with this statement because it happened that British airlines were barred from the widespread European aviation zone, so they were no longer allowed to fly to Europe and land there.
Also, it should be noted that according to the concept of Perfect Competition, the UK will be less striking to foreign investors after the UK's leave from the European Union (Hill 15). The UK will no longer be in the European Union market only, and due to strict migration rules companies will have difficulty finding the right workers. According to the Production and Costs concept, the diminution of corporate tax and the emergence of loopholes may encourage big companies to control their tax domiciles; however, it cannot encourage firms to offer jobs or maintain production in Great Britain (Hill 18). Even the most positive calculations done by the management revealed that high reserves lead to faster growth of the tax burden; it was stated that 15 years is a period needed to fulfill only half of the missing revenues (Hill 10). The answer to Brexit was both a price increase and a reduction in staff and speculation.
A long period of insecurity and anxiety can obstruct economic growth, rise inflation and create a high level of unemployment. As future financial conditions become dubious, consumers and businesses will likely resort to price reductions. Investment and customer spending are mechanisms of the gross domestic result (Baumol 3). Accordingly, changes in these spheres affect the general productivity of the financial system. England's economy runs the risk of not meeting the total demand. As supplies and services have become cheaper, exports from England became more attractive to foreigners. Financial indicators show that England faced a decline in economic confidence and a decrease in the business services area, as well as the building sector (Cini 9). If England fails to cope with financial uncertainty in the nearest future, it will face a decline in economic activity, a decrease in foreign investment and a lack of the desire to increase local trade. An effective way to overcome uncertainty and stimulate development involves negotiations, which will result in a positive agreement for a successful secession from the European Union.
As an economist, I do not agree with the arguments of the article which states that the UK economy may suffer because of Britain's withdrawal from the European Union. In my opinion, the UK is and will be one of the most successful countries of Europe. Throughout its history, the United Kingdom was engaged in the creation of its own empire. Unlike many other European states, which formed long-term alliances based on general faith or a widespread history, England was never concerned with ethical considerations about fraternal human or revered duty as well as distorted allies and opponents, who depended on the explicit situation. After the leave, the European Union will discuss the trade terms with the UK just as it did before, as the financial system of both sides is directly intertwined. The split of the UK accounts is about 15% of exports to 27 other EU partners; and in the repair sector trade is even livelier (Cini 8). Neither side will desire to mislay these economic compensations. In my opinion, if the UK retains admission to the widespread market and at the same time reforms its lawful norms, its economy will be able to avoid economic collapse.
Great Britain is a modern and successful country with a highly developed economy and with a leading position in Europe and the world. The decision of Great Britain to stop its membership in the EU has destabilized the status of the European business. This issue has changed the political environment of the region and requires the explanation of Britain's new role in the world arena. Along with uncertainty concerning the potential stability of the EU, Brexit proves that Great Britain is a successful country with an extremely developed economy, with a leading position in Europe and with its own new efficient economic activity in the world. The long-term economic vision for Great Britain is a modern and successful country with a highly developed economy with a leading position in Europe. It can be stated that the world largely depends on Brexit. The British economy managed to withstand the upheavals, which emerged immediately after the referendum. The future of the country's economic development depends solely on Great Britains domestic and foreign policies.
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