Global Political Economy Assesment Report

Running head: GLOBAL POLITICAL ECONOMY
Global Political Economy
Name of the Student
Name of the University
Author note

GLOBAL POLITICAL ECONOMY
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Table of Contents
Answer to Question 1.1...................................................................................................................2
Answer to Question 1.2...................................................................................................................2
Answer to Question 1.3...................................................................................................................3
Answer to Question 1.4...................................................................................................................4
Answer to Question 2.1...................................................................................................................5
Answer to Question 2.2...................................................................................................................6
Answer to Question 3.1...................................................................................................................7
Answer to Question 3.2...................................................................................................................8
Reference List..................................................................................................................................9

GLOBAL POLITICAL ECONOMY
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Answer to Question 1.1
Effects of UK leaving the Eurozone
The effects of UK leaving EU is huge on the global economy as well as the countries of
the world. The regional economic inequality will exacerbate in the UK for Brexit. After the vote
of Brexit the global economy contracted by $2 trillion. As an effect of Brexit gold mining stock
rose in value and the dollar strengthened. Hence, the gold price hiked to $1,358 per once and
lead to significant gains for South African miners such as Gold Fields and AngloGold Ashanti.
The trade relationship of the UK with rest of the world changed after the decision of leaving EU
(Adler-Nissen 2016).
New tariffs are negotiated between UK and EU as the country is leaving EU. Therefore,
if the UK is unable to find new market for trade, the growth of the trade of UK will reduce and
the economy will shrink. Leaving EU will enable UK to trade with the emerging markets and
economic powerhouses of the future. Thus, if UK’s exit from the EU is followed by the recession
then producers of oil, copper, flower and wineries from Nigeria, Zambia, Kenya and South
Africa will suffer respectively (Ansorg and Haastrup 2016). The countries outside EU will
facilitate through Brexit as they can establish trade deals with UK without intervention of EU.
Countries like China is planning for a free trade deal with UK to minimize trade barriers and
maximize revenue of both countries. Africa may facilitate from UK leaving the EU with the help
of advanced technology rather depending on its commodities.
Answer to Question 1.2
Importance of Britain investing in Africa

GLOBAL POLITICAL ECONOMY
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In the developed economies several factors are hampering the growth of business such as
stringent legislation and regulations, low cyber security and terrorism. Whereas, in Africa there
is no such trade barriers and it is offerings a frontier where investment and entrepreneurship both
may find long term growth and value. With large population, natural resources, growing
agriculture and manufacturing industries the country is a lucrative hub for foreign investment for
infrastructure and technological development (Ayittey 2016). International competition in the
Africa increased because of China’s influence. The countries such as China, France and
Germany are the biggest trading partner of Africa. The UK government also stepped into a trade
deal with three biggest players of Africa including Kenya, Nigeria and South Africa. The Brexit
impacted the UK and it is surrounded by uncertainty. In this situation trading with Africa will
improve the country’s present scenario (Bennell 2017). The enhanced trading opportunity
between both the countries will stimulate investment in infrastructure and manufacturing sector
and push the long term growth. The companies of UK invested $110 million in the African
country of Ghana and Nigeria. Africa is one of the fastest growing economies of the world and to
support its growth long term investment goal is required.
Answer to Question 1.3
Benefit of Africa from UK exit the EU
Africa may face a serious impact for the uncertainty and volatility arising out of Brexit.
There is as well some good effects of Brexit on African economy. As the UK exit from the EU,
all the trade deal between Africa and UK must be renegotiated (Butler, Jensen and Snaith 2016).
The negotiation of trade deal may offer some preferential trade agreements for the African
economy. The African farmers may facilitate through the new trade relation as they will get UK
market to sell their products at an attractive rate. The use of Common Agricultural Policy (CAP)