Financial Management Report: Brexit's Impact on UK Economy

This financial management report examines the economic consequences of Brexit, focusing on the UK's decision to leave the European Union. It analyzes the potential benefits and drawbacks of this decision, including the impact on trade, investment, and financial services. The report presents arguments from different economists regarding the effects of Brexit on the UK and Europe, considering factors such as sovereignty, free trade agreements, and regulatory measures. It explores how Brexit affects various aspects of the economy, including the labor market, trade relations, and financial planning, and offers insights into the uncertainties and challenges that may arise in the coming years. The report references key sources to support its analysis, providing a comprehensive overview of the financial management implications of Brexit.

Running head: FINANCIAL MANAGEMENT
Financial Management
Name of Student:
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Table of Contents
Answer to Question: 1.....................................................................................................................2
Answer to Question: 2.....................................................................................................................2
Reference List..................................................................................................................................4

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Answer to Question: 1
Britain decided to quit the European Union (EU) membership to re-establish its
sovereignty and small and medium-sized industries by protecting trade and investment. UK will
be benefited by leaving the as it would lead to immediate cost saving as the contribution of UK
to the budget of the EU will be stopped.
EU membership offers free trade agreement such as exemption from tariffs and other
restrictions with other member countries of EU and rest of the world. It also come up with
unrestricted financial services across the continent (Corbett). UK wanted to set its own free trade
deal with rest of the world by leaving the EU in order to facilitate small and medium-sized firms
to trade oversea. As regulatory measures of the EU membership burdened these firm to trade
overseas. UK is the biggest financial hub of the EU. Thus, it facilitated with huge inward
investment and free flow of financial services. Even after leaving the EU single market, Britain
can continue tariff-free trading (Dhingra and Thomas). The economy will be free from rules and
regulations of the EU. Though, Britain have to sacrifice over domestic affairs, it will allow to re-
establish the country as truly sovereign and independent nation. While, exiting the EU will not
cost their connection to the rest of the world. Rather, it would amplify the voice of the Britain
across the continent as sovereign nation. As the country will not dump other important
agreements and treaties such as the UN, NATO and the WTO.
Answer to Question: 2
The first economist said that, a large of workers who live and work in Europe, were
denied to vote after Brexit. A turnover of 37% were seen in British which clearly reflects the
division among the diverse cultures and the divisiveness of the issue in terms of class, growth of
insecurity, austerity with government has been faced with the residents. Brexit is affecting each

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democracy and creating corruption which is dominated by plutocratic donors and media who can
manipulate opinions. Ironically, many leaders of Brexit campaign and companies are leaving
Britain to prevent from the British taxes (Outhwaite).
In views of the second economist, Europe will benefit from lower uncertainties. The first,
being time and energy waster in creating quality relations with other economies of the campaign.
The European Union has created quality relations with each ecosystems and there has been so
much city to city collaborations in terms of foreign direct investments and technological
advancement. Uncertainty will be reduced in terms of financial planning as all the energy and
effort goes into planning schemes that will positively impact the European Union. Europe will be
able to think more clearly and will get global recognition in terms of growth objectives because
Europe already has diverse cultures who can raise the efficient output (Pisani-Ferry).
Uncertainty will not be removed and will stay for decades because it is uncertain whether
government bills will be passed, companies will earn more revenues and there will continuous
change in strategies of labor unions, according to the second economist. Moreover, trade
relations will go down for which UK and its trading partners may decide against trade.

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Reference List
Corbett, Steve. "The social consequences of Brexit for the UK and Europe: Euroscepticism,
populism, nationalism, and societal division." The International Journal of Social Quality 6.1
(2016): 11-31.
Dhingra, Swati and Thomas Sampson. "Life after BREXIT: What are the UK’s options outside
the European Union?." (2016).
Outhwaite, William, ed. Brexit: sociological responses. Anthem Press, 2017.
Pisani-Ferry, Jean, et al. Europe after Brexit: A proposal for a continental partnership. Vol. 25.
Brussels: Bruegel, 2016.