Brexit: A Comprehensive Analysis of UK's Economic and Trade Services

This report provides a comprehensive analysis of Brexit, examining its implications for the United Kingdom and other member nations. It begins with a brief history of the European Union, outlining its formation and evolution as a unified trade and monetary body. The report then delves into the challenges faced by the UK as a member of the EU, including financial costs, inefficient policies, and issues related to bureaucracy and migration. The core of the report focuses on the economic impact of Brexit, assessing its effects on the UK's growth rate, trade, and employment, as well as the consequences for other European nations. The analysis highlights the complexities of Brexit, including the impact on emerging trade agreements, tariffs, and the movement of businesses. The report concludes by summarizing the overall impact of Brexit on the economic and political landscape, emphasizing the need to understand the multifaceted consequences of this significant event. The report also highlights the effects on the UK's economy and other member nations. The report concludes with a summary of the overall impact.

Brexit

Contents
INTRODUCTION.................................................................................................................................3
MAIN BODY........................................................................................................................................3
Brief history of European Union........................................................................................................3
Challenges facing the UK as a member of the European Union........................................................4
Impact of Brexit on the UK and other member nations’ economy.....................................................6
CONCLUSION.....................................................................................................................................7
REFERENCES......................................................................................................................................7

INTRODUCTION
Brexit can be describe as the withdrawal of United Kingdom from European Union.
This refer as the British exit decision from the member of European Union. In June 23, 2016
United Kingdom has referendum in order to leave the European Union (Clarke and et.al.,
2017). This decision of British leads to have impact of economy as well as trade services.
This report is based on trade services in United Kingdom and affect of European Union on its
member are also analysed. In this report the overall impact faced by United Kingdom due to
Brexit has been identified. European Union history and background is evaluated properly as
well as different issues and challenges that United Kingdom have to face as a member of
European Union is also identified. Apart part this the major impact of Brexit on United
Kingdom as well as economy of other member nation is determined.
MAIN BODY
Brief history of European Union.
European Union refers as the union or community that is developed with several
member of Europe. This Union is considered as a unified trade or monetary body which
consist of 27 member form different countries. European Union is very effective for
eliminating all control of boarder between the member of Union. This will lead to open the
borders for trade of goods and services between the members of European Union. But this
does not includes import or export of crime and drugs. European Union is very beneficial to
the companies which is manufacturing and selling products in European market area. Due to
European Union products and services can be selling to other country which is a part or
member of European Union without tariffs and duties. European Union lead to provide
permission to the practitioners of most of the services which includes medicine, tourism,
banking, law and other services to operate the activities in all member countries of European
Union. This can be consider as the main reason of airfares, internet and phone calls services
are at lower cost.
The concept of European trade was first established in 1951 and the motive of
developing this Union is to make community of all countries of Europe for their benefits. It
consist of six founding member which are Belgium, France, Italy, Germany, Luxembourg
and Netherlands who are part of European Coal and steel Community (A brief history of EU,

2020). This union was started over half a century ago. European Union was stabled by
visionary leaders that all come together in order to develop as economic as well as political
stability as this will lead to ensure European long term peace (Colantone and Stanig, 2018).
In 1957, the further success of ESSC was broadened by cooperation of signing Treaties of
Rome. This cooperation in lead to creating European Economic Community as well as
European Atomic Energy Community. The motive of this community is to develop and build
a common market which is based on free trade and services as well as freedom of the
movement of people or citizens of Europe. The customs duties between the countries which
are part of EEC has been removed n 1968 and in this year first common policies is developed
which is related to agriculture as well as trade. Along with this European Atomic Energy
Community and EEC was created to promote the pacific use of nuclear energy in Europe
area.
In mid 60’s the European Community was well established and at this time the leaders
of community felt that these communities could be more imported with the Merger Treaty of
all communities are combined into one community in order to create a European Union. This
is considered as the significant step taken by leaders in establishment of European Union.
With the growth in European Union it will lead to enhance the free movement of trade
services as well as goods or community. This is very helpful in enhance wealth and
employment rates with the community members countries. Due to this single market is
developed as stipulated in Single European Act and this is undoubtedly one of the greatest
achievement of European Union. In 1992 the Treaty of Maastricht has signed which lead to
created three strong pillars of European Union. This includes European communities,
Common Foreign and Security Policy (CFSP ) and Police and Judicial Cooperation in
Criminal Matters (JHA). This will lead to introduction of European citizenship as well as
enhanced the power of European Parliament. Along with the 5th enlargement, European
Union has faced challenges of Bureaucratic. This is the result of signing Lisbon treaty in
2007 which is significant for simplified the working methods, voting rules and created a
President of the European Council.
Challenges facing the UK as a member of the European Union.
There are different issues and challenges faced by United Kingdom as a member of
European Union. These challenges leads to have direct impact on performance as well as

growth of country (Hobolt, 2016). There are various advantages provided by the European
Union to its member but along with the there are many drawbacks that lead to have negative
impact on U K. It is crucial to identify and analyse the major challenges and issues that
United Kingdom have to deal with as a member of the European Union. Different challenges
are member below that are considered as the disadvantage of United Kingdom due to member
of the European Union.
Cost – There are very high cost charged by the European Union for membership. It has been
determined that the cost of the European Union is £ 15 Bn which is approx the gross of
0.06% of its GDP (Disadvantages of EU Membership, 2020). This member is very costly to
United Kingdom as well as have direct impact on its growth or development. Cost is one of
the major issues faced by United Kingdom as a member of European Union.
Inefficient policies – European Union has developed different policies that has direct and
indirect impact on effective and efficient performance of United Kingdom. It has been
determined that the larger percentage of European Union spending is going to Common
Agricultural Policies. This lead to enhance the prices for consumer as well as encourage the
over supply. Due to development of ineffective policies United Kingdom have to deal with
several problems.
Pressure towards austerity – There are lots of pressure faced by faced by southern
European countries from the European Union in 2008. This is the major issues that United
Kingdom have to deal with because of member of European Union. This will lead to cuts the
spending in order to meet budget deficit targets. Economist has argued that austerity will lead
to counter productivity where as Greece country was force to accept the austerity.
Problems of the Euro – The major problem that is United Kingdom has to deal with as a
member of European Union is that it has impact on economic condition of country. It has
been determined that member of European Union does not mean Euro member
(Kierzenkowski and et.al., 2016). But European Union has lead to create single currency for
the Euro zone areas. This lead to create various of problems such as interest rates are not
suitable for the whole Euro zone areas. Due to this economic rate of United Kingdom are
decreasing as well as have affect on increase unemployment rate with the country.
More bureaucracy less democracy – Bureaucracy refer as a set of rules and regulation that
needs to be followed by each and every member. It has been identified that European Union
has develop extra layers of bureaucracy which will limit the power of taken decision. Due to

more bureaucracy and less democracy lead to have negative impact on power and authority of
United Kingdom to take decision for their benefits. Due to this British Chamber of commerce
has been estimated that the United Kingdom annual cost of European Union regulation is £
7.4 bn.
Net migration - European Union has developed several policies which includes free
movement of people around the member countries (Sampson, 2017). This will lead to create
major negative impact on United Kingdom as free movement of labour lead to have
significant impact in enhance overcrowding issues of United Kingdom cities. It has been
analysed the due to free movement act population of United Kingdom has been rise up to 70
Million over a decade. This immigration has helped in improving the price of housed as well
as congestion on roads.
Impact of Brexit on the UK and other member nations’ economy
Brexit refer as the exit of United Kingdom form European Union which has taken
place on June 2016. The Exit of British from European Union has significant impact on
economic and political condition of country. This will lead to consequences on both United
Kingdom as well as other member of European Union (Evans and Menon, 2017). Brixit lead
to have impact on emerging new trade agreements which has been raise tariffs as well as
cause inflation. Due to this cost of travel and communication has been increase. United
Kingdom has suffered due to Brexit as its lower the growth rate of economy and lead to
movement of headquarter of various business to European Union. So it has significant impact
over growth rate, trade as well as jobs. Different impact of Brexit on United Kingdom as
well as other member country economy is mention below in detail.
Impact on United Kingdom economy and other countries.
Brexit lead to have major disadvantage on the economic growth rate of United
Kingdom. This is due to increase in uncertainties as this lead to slower the growth of United
Kingdom from 2.4 % in 2015 and it was 1.5 in 2018. It is been estimated that Brexit would
lower the growth rate of United Kingdom in over 15 years to 6.7 % (Brexit: The UK has
officially left the EU - what happens next?, 2020). Brexit will lead to eliminate the free trade
with the other member of European Union. This increase the cost of export for products and
goods. Ireland share the borders with United Kingdom and this remains the part of European
Union. The affect faced the performance of country as well as influence the trade. Due to
Brexit as well as policies of European Union lead to have affect on relationship between

United Kingdom as well as other countries who are member of European Union. There are
many strong companies which are working in London market area such as JP Morgan,
Goldman Sachs and so on (Dhingra and et.al., 2016). Due to Brexit these companies has
already switched its 10 % clients. It has been determined that Brexit vote lead to affect on
economic growth rates as well as increase in unemployments rates with in the nation. The
Euro rate as fell 2% which is $ 1.11 where as pound rate has fell upto 8 % which is $ 1. 36.
CONCLUSION
From the above report it can be concludes that Brexit lead to have major impact on
the growth and development of nation. It has been determined that European Union is
developed by great leaders of Europe and motive of developing this Union is to enhance the
economic and political condition of nation. But there are several consequence or issues faced
by United Kingdom as a member of European Union. This will lead to increase population in
country as well as improve unemployment rates of nation. Brexit will lead to have influence
over United Kingdom economy as well as other nations also.

REFERENCES
Books and Journal
Clarke, H.D. and et.al., 2017. Brexit. Cambridge University Press.
Colantone, I. and Stanig, P., 2018. Global competition and Brexit. American political science
review, 112(2), pp.201-218.
Hobolt, S.B., 2016. The Brexit vote: a divided nation, a divided continent. Journal of
European Public Policy, 23(9), pp.1259-1277.
Kierzenkowski, R., and et.al., 2016. The economic consequences of Brexit.
Sampson, T., 2017. Brexit: the economics of international disintegration. Journal of
Economic perspectives, 31(4), pp.163-84.
Dhingra, S and et.al., 2016. The consequences of Brexit for UK trade and living standards.
Evans, G. and Menon, A., 2017. Brexit and British politics. John Wiley & Sons.
Menon, A. and Salter, J.P., 2016. Brexit: initial reflections. International Affairs, 92(6),
pp.1297-1318.
Goodwin, M.J. and Heath, O., 2016. The 2016 referendum, Brexit and the left behind: An
aggregate‐level analysis of the result. The Political Quarterly, 87(3), pp.323-332.
Online
A brief history of EU. 2020. [Online]. Available through:<
https://www.eu2017.mt/en/Pages/A-Brief-History-of-the-EU.aspx >.
Disadvantages of EU Membership. 2020. [Online]. Available through:<
https://www.economicshelp.org/europe/disadvantages-eu/>.
Brexit: The UK has officially left the EU - what happens next?. 2020. [Online]. Available
through:< https://www.bbc.com/news/world-europe-51307874>.