Brexit Impact on World Economy

RUNNING HEAD: GLOBAL ECONOMIC ISSUE
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Brexit impact on world economy
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Brexit impact on world economy
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Table of Contents
Introduction......................................................................................................................................2
Objectives........................................................................................................................................2
Brexit as a global issue....................................................................................................................2
Analysis...........................................................................................................................................3
Conclusion.......................................................................................................................................5
References........................................................................................................................................6
Appendix..........................................................................................................................................7

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Introduction
Global issue is considered as any issue that affects the global environment, such as political
crisis, environmental issues, economic crisis and social issues. Global issues can be major or
minor or affect everyone or to the entire society. Generally, these issues can be solved with
cooperation of nations. For this assessment global issue that is chosen is impact of Brexit on
global economy. As this issue is related to economic crisis due to Britain exit from European
Union the rest of the world get affected and facing many challenges that relates to structural
changes, political systems, economic systems, and technological issues (Clarke, Goodwin and
Whiteley). Further in below sections all the information of impact of Brexit is discussed and
analyzed.
Objectives
The objective of this is to know the effect whether positive or negative on the world economy
because of Britain exit from European Union. Further the aim is to know the consequences of
this on financial market, economic growth, currency value, and to know impact of this on trade
across the world.
Brexit as a global issue
Brexit is “British exit “ from the European Union this resultant in fall in British Pound against
the dollar in last 30 years this was first time British pound fall to its lowest seen in figure 2. This
process of leaving starts from March 27, 2017, and the U.K had two years to negotiate a relation
with the European Union. There are implications of this on social, political and economical and
due to that the markets felled and that they called as Black Friday and “markets across the globe

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were tumbling” (Sampson). There were many issues that led to British to exit from the
European Union. Firstly British think they were losing their power as a country as the EU took
all the decisions as all the policies of the EU applied on all 28 state members that makes
countries bound to follow all the policies and system of the Union (Armour).
Analysis
Brexit not all affect the economy of the UK but it also had adverse effect on the global economy,
the major consequences of this decision last for decades for the rest of the world. Mainly
countries such as Ireland, Netherland and Belgium suffer more losses from the Britain exit
whereas Turkey and Russia were the gainers as trade increased from the UK to these countries
(Rehman and Della). Further, impact of Brexit seen in financial market of other economies
as Britain imports in large volume from other countries and due to decreased purchasing power
import declined that caused other economies to slowdown. Brexit sharply impacted on other
countries stock market also that was NASDAQ, LSE, FTSE and many more as seen in figure 2.
Further, the volume of total export by UK declined due to that many firms faced problems
related to achieving economies of scale, competition and all that affect the domestic market as
well as international market (Steinberg). When UK was part of the EU it consisted of 580
million people with GDP of $18.46 trillion after Brexit exports fell to £49.8 billion in 2017 that
was 0.1 percent whereas export to non –EU countries was increased by 3.8 percent from figure 3.
The major impact of this was seen in the international business the UK was exposed to more
international opportunities. Further it is analyzed that UK equally split its trade between non EU
and EU countries. In financial sector in the world the UK accounted for 22.8 percent of financial
services (Cassis and Dariusz).