Yorkville University BUSI 4023: Brexit Case Study Analysis

This case study analyzes the Brexit vote, examining its significance both within the UK and globally, the factors that led to the referendum, and the perspectives of Britons on leaving the EU. The analysis explores the impact of the 2008 financial crisis on sectional divisions within Europe, which fueled resentment against the EU. It delves into the political context, including David Cameron's role in promoting the referendum and the motivations of Britons for supporting or opposing Brexit. Furthermore, the study assesses the potential implications of Brexit on Canada's relationship with the UK and the EU, considering trade agreements and political ties. The analysis offers a comprehensive understanding of the multifaceted consequences of Brexit, from economic impacts to political shifts and global relations.

Running head: CASE STUDY ANALYSIS: BREXIT
CASE STUDY ANALYSIS: BREXIT
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Significance of Brexit within the UK and Globally
Brexit was an important decisions that was taken by the British parliament. It confirmed
the exit of the UK from the European Union. One of the most important scenario that the Brexit
is due to create is rendering the Euro no value within the UK. The vote for Brexit is significant
within the UK as it would provide more value to the pound-sterling as the currency of the
country. The Brexit vote can lead to the UK citizens experiencing more autonomy within their
country. However, at the same time the British citizens would not be able to use their currency in
the EU countries. The EU laws would no longer affect the British citizens (Professors, 2020).
Globally, this is a major blow to one of the most important single market economies of the
world. The UK economy was one of the most important economies that was connected with the
EU. This can mean that the businesses across the other Euro nations and other parts of the world
can take a major hit. The vote becomes further important as it can change the course of progress
for the UK for the future. Some of the most affected people due to the decision are citizens of EU
nations working in the UK.
Panic of 2008 affecting the sectional divisions
In 2008, there was a major financial panic. A major financial crisis occurred due to the
deregulation of the financial industry some years prior to the crisis. Hedge fund trading was
allowed for banks which necessitated the demand for more mortgages. As a result mortgages
were allowed, sometimes without any proper background check. As a result of this huge losses
were incurred by the bank for lending mortgages to people with questionable creditworthiness.
The banking crisis caused soaring real estate prices. The crisis hit the EU very bad and was able
to spread rapidly to all the parts of EU. This was because of the availability of a common
currency euro (Professors, 2020). This contributed greatly towards the creation of resentment
against the EU. The sectional divisions were created among the European countries as they
believed their association with EU have aggravated the issues in regard to their developmental
backwardness. Many countries regarded that the EU was responsible for their absorption into the
economic crisis. This led to the formation of sectional divisions further. The panic caused
significant tensions among many of the leaders of large European economies. EU lost their
credibility for many countries of Europe.
PM David Cameron and the referendum on leaving EU
Since 2013, the Conservative party of the UK was pressurized from many sections. This
included continuous suroskepticism from the party members and the continuous success of the
UK Independence Party. This was mainly due to the fact that the British citizens treated the EU
participation of the UK to be detrimental to the growth of the country. It is important to
understand that a large number of British citizens consider that their jobs are threatened due to
the EU policies. David Cameron came to power with obtaining the majority where Brexit
referendum was one of the most important issues. Moreover, David Cameron was of the opinion

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that most of the UK parties were in favour of the referendum (Professors, 2020). A re-
negotiation process also ensued where Cameron vouched for tougher immigration laws to stop
the influx of large number of workers from the EU countries into the UK. This also contributed
towards the decisions for referendum that were made by David Cameron. The free market
economy of Europe was, according to many, harming the interests of the native British. It
became important that the referendum was taken due to the mounting tensions.
Reception among the Britons
The Britons were receptive about leaving the EU as they thought that this would create
more benefits to the UK citizens. It means that many Britons think that the prospects of jobs,
development and prosperity would improve as a result of Brexit. However all the people are not
in favour of Brexit. Many think that Brexit might affect the developmental prospects of the UK
and destabilize the economy. They believe that creating a closed door economy might expose the
UK to many significant risks (Hobolt, 2016). It was better if the UK stayed with the EU. This
would have ensured the effective performance of the economy at times of trouble. However, one
benefit would be that the UK jobs would be more secure for the Britons. The UK would be able
to sustain much of its economic growth. It can be said that the Brexit would also be beneficial as
an immunity for the British economy in any adverse financial situation that might affect the EU.
Potential implications for Brexit vote relation with Canada
The major problem for Canada stems from the fact that the UK is the second-most
important European country for exporting goods. At the same time the UK is the most important
source of European FDI for Canada. Given this situation the Brexit is bound to have deep impact
on the economy of Canada (David Cameron's referendum claim fact-checked 2020). Currently
the commerce between the two nations are helped by the CETA or Comprehensive Economic
Trade Agreement. The benefits of CETA helps a smoother environment for commerce between
the two countries. This is important for the Canadian economy. However the CETA benefits
would no longer be applicable on the commercial relationships between the two countries. In
short, the Canadian economy would be greatly hit by the Brexit related issues that have affected
the business of the country. The Canadian government also shares some special relationships
with the UK which can be jeopardized by the Brexit oriented developments. At the same time the
constitution and the parliamentary systems are dependent on the UK. Inability of the UK to
manage its economic troubles could hence greatly affect the political functioning of Canada
(Professors, 2020).
In conclusion, it can be said that with all its pros and cons Brexit can change the course
of British economy for many years to come. It is important for Canada to develop new strategies
to control the effects that Brexit can have on the British-Canadian trade relations.

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References
Colantone, I., & Stanig, P. (2018). Global competition and Brexit. American political science
review, 112(2), 201-218.
David Cameron's referendum claim fact-checked. (2020). Retrieved 29 February 2020, from
https://www.bbc.com/news/uk-politics-49753420
Fetzer, T. (2019). Did austerity cause Brexit?. American Economic Review, 109(11), 3849-86.
Hobolt, S. B. (2016). The Brexit vote: a divided nation, a divided continent. Journal of
European Public Policy, 23(9), 1259-1277.
Professors, V. (2020). Contemporary issues in Business: A Case Study Approach.