Impact of BREXIT on Share Market of UK and Europe

“The impact on the share market of the United Kingdom and
Europe before and after the BREXIT announcement”
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Abstract
The exit of the United Kingdom from the shadow of the European Union is one of the important
events recognized globally. Therefore, it is quite obvious that the United Kingdom will face
many hardships to survive with the advancing world that exhibits vigorous competition in the
market. The paper explains, in brief, the effect of the share market in the pre-Brexit and the post-
Brexit period along with evaluating the same with regard to other financial factors. The
evaluation and assessment are done by comparing the trade conditions, economic, condition and
future strategies of trade that can increase the net income in the long run. The real experience of
the United Kingdom’s performance is assessed in this study including the post- and pre-Brexit
years.
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Table of Contents
Introduction......................................................................................................................................3
Background of the research.............................................................................................................3
Aim and objectives of the research..................................................................................................4
Rationale..........................................................................................................................................5
Literature review..............................................................................................................................6
Concept of BREXIT........................................................................................................................6
Influence of BREXIT on the United Kingdom and Europe............................................................6
Concept of GDP and share market as well as comparison of GDP of the United Kingdom and
Europe..............................................................................................................................................7
Impact of BREXIT announcement on the GDP of both countries as well as their share markets. .7
Correlation between BREXIT announcement, performance of the share market and GDP of the
United Kingdom and Europe...........................................................................................................9
Research Methods..........................................................................................................................10
Patterns of data, highlighting significant trends in Share market and GDP..................................11
References......................................................................................................................................13
Appendices....................................................................................................................................15
Appendix 1: Details of the articles reviewed.................................................................................15
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Introduction
BREXIT is an acronym for British Exit, which represents the exit of the UK from the European
Union; this was a decision which affected the operations of the global market adversely, leading
to a historic reduction in the exchange rate of the British pound in comparison to US Dollars,
which had not been experienced even once in the last three decades. This study aims to assess the
impact of the Brexit announcement on the share market and economy of the UK, in comparison
to Europe as well as its impact on the GDP of the two countries.
Background of the research
The Brexit announcement refers to the removal of the United Kingdom from the ambit of the
European Union. On the 26th of June in 2016 through a ballot, it was evaluated that 51.9 percent
votes supported withdrawal from the European Union; hence the government of the United
Kingdom cited Article 50 of the Treaty on the European Union. The removal of the United
Kingdom from the European Union surely influences the share market and affects the GDP of
the country (Bashir, et al., 2019). The United Kingdom was granted the liberty to withdraw from
the before mentioned Union on March 29, 2019, but due to the three times rejection of the
agreement between the United Kingdom and European Union by the MPs of the United
Kingdom, the date is now extended to 31st October 2019. However, the United Kingdom may
leave the union before, if both the parties to this agree. The Brexit deal consists of two parts
namely, a withdrawal agreement of 585-pages and statements on future relation of 26-pages
(Bacon & Cannon, 2018).
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