Economic impact of Brexit on Morocco

Economic impact
of Brexit on
Morocco

Economics 1
Economic impact of Brexit on Morocco
Introduction
In the entire economy, this is very clear that Brexit was drawing of United Kingdom from
European Union. Brexit is generally UK breaking away from their entire trading partner.
European Union will no longer be advantages from the free trade deals within their trading bloc.
However, this is one of the major reasons that are causing much of the uncertainty and
disruption; there could potentially be wide opportunities for the UK government to negotiate the
new or the revised economic partnership agreement (EPA) or trade deal with those countries that
are generally outside EU. The paper purposes to critically analyse the economic influence of the
Brexit (that is generally Britain exit from EU) on one of the country. The country that has been
selected for the analysis is Morocco who recently signed a trade deal with the UK on 26th
October 2019. Furthermore, in the year 2018, total trade among UK and Morocco was equal to
£2.5 (UK Government, 2020). The paper explores the Brexit impact on UK and Morocco, its role
in the global economy and also about the Foreign Direct investment with the theory of OLI.
Also, the paper shows comparative advantage theory related to the Brexit and its effect on
Morocco.
Brexit and its uncertainty
The term “Brexit” is a name that is given to United Kingdom’s leaving from the European Union
which means that it is a mixture of Britain and exit. Brexit was decided to vote for leaving the
European Union (Clarke, Goodwin, Goodwin, and Whiteley, 2017). There are majorly three
reasons due to which Brits voted for Brexit. The economy is considered as one of the major

Economics 2
reasons due to which the EU get unsuccessful to acknowledge different economic difficulties due
to which the people said to exit from EU (Fagan, 2019). The second reason for Brexit is an
increase of nationalism across the world. It has been found that there is increasing disbelief of
the international monetary, trade as well as defence organisation that formed after World War II.
Finally, third reason is related to the political Elitism which shows that party-political
management of Britain tackled thoughtful damage (Mauldin, 2016). The people who voted to
leave rejected both workforce parties and conservative. Together, both the parties have permitted
residua with EU and also witnessed numerous different followers go opposition on the issue. In
the research, this is witnessed that Brexit has led to the uncertainty about the future outcomes
which are a vital driver of the financial behaviour which is over and above the central predictions
(Bank of England, 2019). The process of the Brexit has already impacted the economy of the UK
which has affected certain companies and families more negative for central viewpoint. Brexit
has enhanced uncertainty around the central viewpoint. This uncertainty affects the spending by
the household as well as their consumption of the goods and services within the market. This has
been presented with the graph given below.