https://www.cer.org.uk/sites/default/files/smc_final_report_june2014.pdf
10. Tilford, S. Britain, immigration and Brexit
https://www.cer.org.uk/sites/default/files/bulletin_105_st_article1.pdf
11. Foster, A. Brexit: What will happen to immigration when Britain leaves the EU?
http://www.express.co.uk/news/politics/676612/Brexit-what-happen-to-immigration-if-Britain-leaves-EU- referendum-2016-Chris-Grayling
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Z ED C HEN
What are the possible developments between the UK and other economies after Brexit?
Since the EU referendum everyone knows that the majority of Britons have voted to leave the EU and it will take no longer than 2 years for the UK to break bonds with the remaining 27 countries in the EU. It is definitely not a question of whether or not there will be changes, but rather when and how these changes will take place. There are many reasons for the UK to look forward to seeking new opportunities to cooperate with other economies.
Frexit or another?
The Brexit has been a blasting fuse within the European Union. The EU is now facing a problem of breaking down to a small EU. There is evidence that countries such as France and the Netherlands may leave the EU and make their own paths into the world market. This is because the citizens in those countries who hold favourable views of the EU are in increasingly small number or the leaders may think those poorer countries in the EU are hindering them. Some say that after Brexit the 50% of UK exports that enter the euro-zone will decline dramatically. It makes sense that once the UK leaves the EU there wouldn’t be any more free trade – we would have to sign up to the
rules and standards. However, supposedly when France or other better-off economies in the EU quit as well, the UK will have chances to negotiate deals or sign contracts to allow further trades. Without the regulations of the EU, perhaps it will work out better for Britain.
Asia and the US
The sharp depreciation in the pound will impact trade in goods hugely. Since the volume of exports into the US and China will rise due to relatively cheaper products, the total real output of the UK may rise and domestic industries can grow further. Correspondingly, the price of the imports will increase. Most production lines in the UK highly rely on raw materials imported from the US, China, Germany and other South-east Asian countries. Therefore, industries are going to be shocked if we take imports into account. To overcome the balance of trade deficit, it is crucial to set up a friendly relationship between fast growing economies in Asia. If
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