Money and Capital Markets Task 2022

Running Head: Money and Capital Markets
Money and
Capital Markets
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Money and Capital Markets 1
Contents
Task 1...............................................................................................................................................1
Task 2...............................................................................................................................................1
References........................................................................................................................................4

Money and Capital Markets 2
Task 1
Brexit is an abbreviation of Britain exit that refers to the decision taken by UK to leave the
European Union and continue individually. The main cause of occurrence of Brexit was the
economy of the country. The people of the country knew that UK has the audacity to grow
without interference of any other power. They also knew that interference of European Union
has the power to control the functions and legislations of the country and till the time UK is
governed by EU, the country would not be able to rise above and increase prosperity. The
country wanted to regain control over the EU immigration. The law making bodies of UK were
efficient enough to make rules for people and make them abide it. Thus, the second ultimately
reason of Brexit was the people of UK did not wanted EU to make laws on behalf of the county
(Golab, Knight, and Zamojska 2016). The country wanted to eliminate the pressure of European
Union from them; also, they wanted to rise above inequality and social liberalism in the
environment. Resulting in which, they voted for Brexit from the European Union.
Brexit will show long-term economic, institutional and political shift in the economies of both
the parties. This process will affect increment in trade barriers, capital flow and labour mobility
in UK as well as other EU member states as well. Withdrawal of the country from the frictionless
economic relationship impacted on the cost of both the parties as income and employment
reduced. Thus, it should be noted that no deal Brexit refers to the process of leaving European
Union immediately after the vote out and then there would not be any agreement in place to
enhance their relationship in future (Murray, and Matera 2016).
Task 2
Talking about the impact of Brexit on Australia, it should be noted that with the occurrence of
this type of event, it was sure that Australia would face several complex consequences and
serious challenges in the business environment. The trade negotiation with EU gained
momentum that subsequently increased the solidness of the Australian-European Union Free
Trade Agreement. However, the committee of Australia responded that the country should
continue its relations with European Union as a priority. From the perspective of the committee
of Australia, UK departure from EU can be seen as coincidental towards the free trade relations