Brexit would hold the biggest effect on the United kingdom, although it would still have a considerable effect on the EU. Approximately all of the Britains trade would one way or another have to be negotiated. Trade is one of the crucial things in the British economy, this is why everybody wants to make sure that they won’t underestimate the challenges that will come. One of the consequences of Brexit would involve that Britain would most possible lose their privileged entry to markets which are covered by 36 trade agreements and 58 different countries, that were negotiated by the EU. A result of this would be that the United kingdom would need to impose higher tariffs on imports from those countries. These extra tariffs could end up costing United kingdom consumers nearly 10 billion pounds. This would mean gearing up for negotiations which will end up taking years. It’s very tricky and difficult to negotiate these trade agreements; as well as time consuming. Once United kingdom have decided they are ready to negotiate with other consumers, it doesnt mean that the other countries will want to or be prepared to negotiate deals with them. Accountant in Telford Say – One of the several things which could have have a bad outcome for both the Britain and the EU is that trade will either be reduced or the cost will increase between the two. Brexit can lessen different countries curiosity within the Britain and might reduce investments from other parts of the EU.
As a outcome of Brexit the United kingdom could struggle to acquire any new investments, there are some things that Brexit wont have any influence on such as deep capital markets and the language. The overall impact Brexit can have on the economy is still not 100p.c known as it could go one of various ways. This can be affected by a assortment of different decisions which are waiting to be made. It has been worked out that by 2030, the worst case scenario is that the GPD would be roughly 2.2% lower, than it would if the Britain stayed in the EU. The top case situation is that by 2030, the UK strikes a Free Trade Agreement with the EU, and pursues ambitious deregulation of its economy. If the Britain managed to trade with the rest of the world, the United kingdom GPD could increase by 1.6%, rather than if they decided to stay as part of the EU. Brexit could result in most of the British banking industry losing entry to the single market, prompting major banks to contemplate relocating to maintain access to the Euro market. Brexit could also consequence in there being powerful political resistance in the Britain itself.