European Union is a political and economic partnership between 28 European countries. EU works for improvement in economic conditions of member countries and avoiding war with each other. EU allows free flow of goods and services between member countries and become a single market. Brexit means UK leaves the European Union. It is the decision of people of Britain that Britain has to leave EU through referendum voting process.
The main reason of Brigit is that Britain remains backward in some issues due the restrictions imposed by EU. Britain blames that EU made strict rules and regulations related with trade which is not benefited to UK’s economy. When the voting was conducted 58% of total voting was in the favor that Britain should leave the EU for its betterment. This voting has major impact on economy of UK.
The value of the pound was down. UK lost its top AAA credit rating. The cost of the government loan was higher. Prices of the Stocks were down.
It may bring other drastic changes in the economy of UK. Business policy of European Union governs the free movement of goods, services, people and capital among the member countries to achieve the objective of the single market. When any risky situation arises related with public, health, environment or consumer protection then EU restricts the supply of these elements. So, there is a great opportunity to do business in EU and when UK will not remain its member it cannot take advantage of this business policy.
Food security for the population, climate change and management of natural resources keeping the rural economy alive these all are the part of agriculture policy of EU. UK will have to draw its own agriculture policy. Only a little population comes under agriculture sector and UK imports food product from other countries to fulfil its requirements.
UK’s Tax policy also changes because taxation regimes are provided by the EU to its member country. UK is a developed nation it imports and export goods and services on the concept of competitive advantage, so to set new international link with other countries. UK will have to prepare new policies.
EU member countries are strictly following rules and regulations of labor law .UK must change its policies regarding labor laws.UK leaves EU because UK has to invoke an agreement name article 50 of the Lisbon treaty which wants two sides to agree on the terms of split. The Laws of EU are applicable on UK until UK ceases its membership. UK will continue abide by Treaties and agreements of EU but it could not take part in decision making. The citizens of UK working with EU after leaving EU, UK impose restriction on those who have working in EU and then the citizens will change their employment.
For the individuals who are working with EU UK will have to make policies for them and save their rights. UK receives more benefits as a member of EU because it makes around 40% of international trade of its total trade with EU countries.