Brexit Case Study Analysis docx.

Running head: CASE STUDY ANALYSIS: BREXIT
CASE STUDY ANALYSIS: BREXIT
Name of the Student
Name of the University
Author Note

CASE STUDY ANALYSIS: BREXIT1
Significance of Brexit within the UK and Globally
Brexit was an important decisions that was taken by the British parliament. It confirmed
the exit of the UK from the European Union. One of the most important scenario that the Brexit
is due to create is rendering the Euro no value within the UK. The vote for Brexit is significant
within the UK as it would provide more value to the pound-sterling as the currency of the
country. The Brexit vote can lead to the UK citizens experiencing more autonomy within their
country. However, at the same time the British citizens would not be able to use their currency in
the EU countries. The EU laws would no longer affect the British citizens (Professors, 2020).
Globally, this is a major blow to one of the most important single market economies of the
world. The UK economy was one of the most important economies that was connected with the
EU. This can mean that the businesses across the other Euro nations and other parts of the world
can take a major hit. The vote becomes further important as it can change the course of progress
for the UK for the future. Some of the most affected people due to the decision are citizens of EU
nations working in the UK.
Panic of 2008 affecting the sectional divisions
In 2008, there was a major financial panic. A major financial crisis occurred due to the
deregulation of the financial industry some years prior to the crisis. Hedge fund trading was
allowed for banks which necessitated the demand for more mortgages. As a result mortgages
were allowed, sometimes without any proper background check. As a result of this huge losses
were incurred by the bank for lending mortgages to people with questionable creditworthiness.
The banking crisis caused soaring real estate prices. The crisis hit the EU very bad and was able
to spread rapidly to all the parts of EU. This was because of the availability of a common
currency euro (Professors, 2020). This contributed greatly towards the creation of resentment
against the EU. The sectional divisions were created among the European countries as they
believed their association with EU have aggravated the issues in regard to their developmental
backwardness. Many countries regarded that the EU was responsible for their absorption into the
economic crisis. This led to the formation of sectional divisions further. The panic caused
significant tensions among many of the leaders of large European economies. EU lost their
credibility for many countries of Europe.
PM David Cameron and the referendum on leaving EU
Since 2013, the Conservative party of the UK was pressurized from many sections. This
included continuous suroskepticism from the party members and the continuous success of the
UK Independence Party. This was mainly due to the fact that the British citizens treated the EU
participation of the UK to be detrimental to the growth of the country. It is important to
understand that a large number of British citizens consider that their jobs are threatened due to
the EU policies. David Cameron came to power with obtaining the majority where Brexit
referendum was one of the most important issues. Moreover, David Cameron was of the opinion