Brexit is the shortened term for ‘Britain Exit’. This refers to the decision taken by the United Kingdom to move out of the European Union. This involves the process of negotiating new trade deals, marking borders, citizenship registration and rules. This also involves renegotiating residence permits and regulations for trade.
The announcement of Brexit immediately caused the depreciation of the value of the pound. Soon, the nation witnessed a decrease in car manufacturing within the country.
Also, there was a relocation of assets worth one trillion dollars from the UK to other European countries. Many analysts still firmly believe that Brexit will ultimately lead to a net positive gain in the economy of Britain. Others argue that Brexit is not a good decision by Britain.
Benefits and drawbacks of Brexit
Brexit will provide the country with more freedom to create its trade regulations and deals. It will regain its sovereignty which is considered a win-win situation by every other country. It can exercise full control over its borders. This is an advantage since previously, the EU allowed immigrants from other European nations to settle freely.
Again, the UK benefits from the trade deals between the EU and the other world powers as a whole. The nation might not receive favourable results while trying to recreate trade deals. Moreover, Brexit comes with a level of uncertainty. This causes volatility and affects business operations within the UK.
Brexit’s effects on Britain
After the decision of Brexit, the country witnessed regular fluctuations in the value of the pound. The volatility of the currency showed the lack of confidence of the investors. Moreover, Britain’s car plants received imported components from Europe. Again, they exported most of their finished cars to other European countries. This decision might affect the car manufacturing plants in the UK.