The Effects of Brexit on the UK (Essay Sample)

The Effects of Brexit on the UK
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The Effects of Brexit on the UK
Brexit stands for "British Exit," which means the United Kingdom's will to leave the European Union (EU), which happened in 2016. During the vote, the outcomes roiled the world economy and exceeded most experts' predictions (Giles, 2018). The decision gave the worst blow to the British pound, which dropped to its smallest value versus the US dollar in almost 30 years. While the decreasing valuation of the pound benefited exporters, it negatively affected importers, who consequently passed the burden on to customers while also contributing significantly to the yearly inflation rate (Giles, 2018). There are several effects of Brexit which are likely to have a sustained negative impact on the economy of the United Kingdom.
The move implied that Britain would not have trade deals with European union members. Tariffs levied on export sales, made a significant contribution to the inflated prices of their commodities in European markets. At first, the country enjoyed free exchanges with the sovereign states (Pettifar, 2018). Since their items were overpriced in Europe, numerous exporters felt disappointed by the authorities. For example, since most businesses prevented English-speaking into the European Union economy, this phase was devastating for the UK's Commercial Center (Giles, 2018). In London, over 5,000 job opportunities were lost. This situation resulted in the decline of land and building businesses. To make it worse, most UK firms lost their ability to tender on EU contractual agreements. The United Kingdom faced a difficult task in reorganizing its economic system in the absence of the organization.
Furthermore, the Government lost all of its financial sector advantages. For example, the EU incorporates cutting-edge technologies that it holds with the member states. For many decades, it has aided its member countries in energy management, research and development, and environmental protection. This aspect implies that they were to give up these services as a result of Britain's withdrawal (Kottasova, 2018). The banking industry, in particular, has lost its capacity to function in European Union member countries. As a result of Brexit, they were unable to continue with the expensive costs of internet, telephone service, and plane tickets. Because the British currency has been reducing in value against the US Dollar, American stocks became even more costly for international investors, mainly stock exchange (Pettifar, 2018). Significantly, Brexit caused gold rates to rise by 6%. Because the United States is the largest exporter to the United Kingdom, the move increased the project's cost. The advent of Brexit lessened the revenues of US investors doing business in Europe. Consequently, this stymied US business activities in the United Kingdom.
Brexit had an adverse influence on the rights of European Union taxpayers, particularly those residing in the United Kingdom and British nationals living in the European Union. The Withdrawal deal permitted individuals to freely