Brexit is a referendum from the British government which was first introduced on June 23, 2016. It spoke about the United Kingdom leaving the European Union, as the residents believed that the benefits from the unified monetary body did not make any changes in the economy.
Article 50 was submitted by the former UK Prime Minister Theresa May which is still under consideration and has a deadline of January 31, 2020, which can be extended to July 1, 2020. Due to Brexit, the United Kingdom will be impacted in many ways including,
No-deal Brexit: There can be no trade deal without a trade agreement, and the ports and airlines will be ineffective. Britain can face the problems of imported food and drugs in the latter days.
The idea is unclear: People are still unclear about the whole idea of Brexit and do not understand the economic hardships it can impose in the future. Britain can revoke its application due to the same reason, but many are still in favour of Brexit.
Consequences on Britain
The UK is suffering from Brexit already as the economy has slowed down, and many international businesses have moved their headquarters to the other parts of Europe. It is impacting the growth, trade, and job sector.
Impact on trade
With Brexit, The UK’s tariff-free trade with other EU members will get eliminated. This will raise the cost of exports and traders with suffering as their goods will become more expensive in other EU countries. The prices of imports will also increase, which will result in inflation. The higher the inflation, the lower the standards of living for the residents. With climate changes and drop in the national food production, Brexit can be troublesome.
UK will also lose state-of-the-art technologies from the EU, which grants its members with environmental protection, research and development, and energy.
Impact on Jobs
Another sector which will get affected by Brexit is job opportunities. The jobs in neighbouring countries will not be readily available for the youth of Britain. As Germany will need over 3 million workers by 2030, the opportunities will be first available to the EU countries and then the rest of the world, including Britain. With the low availability of employees, the companies can have a hard time building their workforce in Britain.
Impact on neighbouring countries
Northern Ireland who shared its boundaries with the United Kingdom will remain with the UK while being a part of EU. The business investments in London has decreased to 11 per cent in the past year. The international companies will not use London as an English-speaking entry in the EU economy. Scotland has voted against Brexit as Scotland believes that staying in the EU is a better option.