Brexit - Hexit - Schmexit – What does Brexit mean?
By Esther Peck
A June 23, 2016 event caused markets all over the world to rumble and stumble and repercussions are on-going. It triggered “the deepest political and financial turmoil in Great Britain since World War II, including the biggest ever one-day fall in the sterling against the dollar.” 1 This event was the vote by British Citizens to leave the European Union (EU). The EU is an economic and political association of European countries as one unit with internal free trade and common external tariffs. Itsgoalsare a singlemarketforgoodsandserviceswithoutanyeconomicbarriers,and a commoncurrency, the euro.an exit(= act of leaving) by the United Kingdom from the European Union (short for "British exit"): an exit (= act of leaving) by the United Kingdom from the European Union (short for "British exit"):Brexit is the word made of “British” and “exit”, meaning an exit by Great Britain from the European Union: BR + EXIT = Brexit. While one can easily grasp the meaning of the word “Brexit”, the implications and consequences of this exit from the European Union are much more complicated.
What are the main concerns? First, the British government must renegotiate separate trade and investment relationships with all other European members, a complicated process with far reaching consequences economically and politically. How will ow Ho Britain’s growth, trade and investment outlook be affected for the next few years? Second, will London remain a major financial center for Europe? Third, what does this exit mean for the EU itself? Britain’s monetary support to the EU’s budget was second only to Germany. 2 Many voters felt that being a member of the EU undermined national sovereignty. They felt it especially resulted in a loss of control regarding immigration, which was putting a huge strain on public services, housing and jobs. Membership in the EU also cost Britain billions of pounds in EU membership fees, prohibited Britain from making its own trade deals and burdened it under excessive EU regulations, which have not always been the best choices for Britain.
Why should United States citizens be concerned about Brexit? First, it heavily impacted the stock market and citizens’ personal investments, since the British pound sterling is one of the most important global currencies. The volatility caused by Brexit is causing many American business owners to reconsider spending plans. The dollar rallied against the British pound, which is good for American travelers, but makes American company’s products more expensive. The profits of global companies such as Apple, Coca-Cola, Caterpillar and Nike for example, will be negatively impacted. The U.S. manufacturing sector will lose jobs, which impacts the whole U.S. economy. 3 Second, Prime Minister David Cameron resigned, having campaigned unsuccessfully to stay in the EU. His resignation has strong implications for political stability and relationships. The new British leader, Theresa May, faces multiple pressures and instability on many fronts, one of which is that Brexit could be just the first of more EU countries to leave the EU. Yes, U.S. citizens should understand and care about Brexit. The British exit from the EU could have major implications for the U.S economy as well as for the European economy. Stay tuned!
Citations: Cut & Paste into Browser: 1.KKCN11P2FB
By Guy Faulconbridge| NEW YORK World News | Tue Sep 20, 2016 | 2:44am BST 2.time.com/4236001 “What a U.K. exit from the E.U. could mean” by Ian Bremmer. March 07, 2016 issue of TIME.Feb. 25, 2016 3. CNNMoney (New York) Published June 24, 2016: 11:59 AM ET by Patrick Gillespie @CNNMoneyInvest.
Bibliography: 4. http;// What is Brexit and what is going to happen now that Britain has voted to LEAVE the EU? By Alice Foster PUBLISHED: 08:00, Sun, Oct 2, 2016 | UPDATED: 11:42, Sun, Oct 2, 2016 5.The New Yorker July 11 & 18, 2016 Page 32 The Financial PageHow Will Brexit Shake Out? By James Surowiecki
6. James Masters, CNN UPDATED 12:21 PM ET, Mon. September 12, 2016 an exit(= act of leaving) by the United Kingdom from the European Union (short for "British exit"): an exit(= act of leaving) by the United Kingdom from the European Union (short for "British exit"):