Brexit: Challenges and Impact on UK Economy

BREXIT

Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
Brief history of European Union..................................................................................................3
Challenges facing the UK as a member of the European Union.................................................4
Impact of Brexit on the UK and other member nations’ economy..............................................5
Export of good from manufacturing firms...................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8

INTRODUCTION
Brexit is the event when Britain exits itself from the European Union. During the
referendum in UN 52% people voted to leave EU and remaining 48% of people voted to remain
into EU. The votes were held in the year 2016 and the government of Britain formally announces
the separation of the country from EU in 2017 (Arnorsson and Zoega, 2018). This report discuss
about the history of Brexit, how and when I come into force, the challenges the country have to
face during brexit, the impact of Brexit upon people, industries and lastly what were the
situations regarding export of good from manufacturing firms.
TASK
Brief history of European Union
The European Union is a group where around 28 countries operate together as a
cohesive economy. Out of the 28 countries around 19 countries uses the Euro currency. The
main objective of forming the Union was to bring an end to warfare among European countries
that participated in World War 2. In 1993, 12 countries formed The European market which
ensures four freedoms: the movement of goods, services, people and money (Clarke and et. al.,
2017). The beginning of EU starts with European coal and steel community in the year 1950, in
that there were 6 members which were Belgium, France, Germany, Italy, Luxembourg and the
Netherlands. Later they came under European Economic Community in the year 1957. The
primary focus of this community was at agriculture and the elimination of any barriers related to
customs. Slowly the community expands itself by alliance with more countries adding into it.
Later the Community came up with an idea of one European market. Therefore in 1993, 1
November The Maasticht Treaty took place and the European community was get replaced by
European Union. From that treaty a single currency which needs to get followed in the whole
European union got decided and the Euro get debuted in the year 1999 1st January. The Union
was formed with many objectives and goals, some of these objectives and goals were as follows:
1. Maintain peace in Europe
2. Good living standard of people
3. Equal and fair distribution of resources among people so there should be no
discrimination between rich and poor.
4. The proper respect given to all languages and culture
5. All the business which come under the European union should work together so that there
must be an equal growth to all these businesses.
After the formation of European union, the Europe experienced no war and all the countries
work all together. Apart from this in the year 2012, the EU also won The Nobel peace Prize.
From the EU, there were free flow of people, goods, finance and etc. A person from Italy can
now choose to study or move at Greece (Colantone and Stanig, 2018). Or a student from France
can go to a university in Belgium. The whole EU was a success for European Economy. To be a