2.1 General information The big event which

2.1 General informationThebig event which happened in 23rd, June, 2016 would be seen as the landmark datein the history of United Kingdom and global economy. Britain was voted to exitfrom European Union (EU), widely called “Brexit”. Obviously, this action led tomany effects on some aspects including politics, security and economy and tradein EU countries and related countries. Especially, global trade is influencedlargely since United Kingdom is a big importing country of Asia. When leavingthe EU, the economy of UK has been fluctuated deeply; therefore, trade betweenUK and other countries all over the world also has changed so much. Accordingto the article “The impact of Brexit on global trade and logistics”, September13, 2016, Pridel claimed that if British exit from EU, the current traffic-freeand quota free EU- UK trade may take a hit, as both sides push for limiting thegoods and services as well as impose tariffs for imports and exports.

It can besaid that trade of UK has close relationship with EU so the decision to isolatethe EU can lead to the lower goods and services movement that means loss ofbusiness to the logistics industry. British are a huge economic country andLondon is supposed as a central economy; however, this economy relies so muchon European economy so it affects global trade widely. What is more, exitingfrom EU make UK has to establish new relations with the EU and trade relationsalso have changed so far. It is predicted that the economic growth of UK willbe reduced after leaving the EU. In the article ” Brexit- facts, fiction, andimpacts on GTM”, May 4, 2016, Claire Umney pointed out some changes of Globaltrade Management (GTM) in term of Brexit such as the UK’s trade relations wouldbe governed by World Trade Organization (WTO) rules. This bears the drawbacksthat the EU, for instance, could apply a range of tariffs to goods traded withthe UK- in contrast to the current zero tariff benefits as part of the EUsingle market.Regardingto global trade, it is believed that EU will not give UK a good tradeagreements as when UK was a member of EU.

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!

order now

Definitely, EU have to tighten tradepolicies with EU because if EU did not punish UK, the other European membersalso tend to exit from EU to gain own freedom. In fact, after leaving the EU,the value of British pound also sharply decreases. This is demonstrated thatglobal trade will be fluctuated so much since many countries looked UK as abridge to trade with 28 countries in EU. According to the research “Brexitmonitor- The impact of Brexit on (global) trade”, the author said thatcountries were most impacted including Belgium, the Netherlands and Germany.They are the UK’s large trading partner in term of both volume and proportionof exports and imports.

In short, it is supposed that Brexit puts the negativeimpacts on global trade not only EU members but also non- EU members.


I'm Mary!

Would you like to get a custom essay? How about receiving a customized one?

Check it out