BREXIT

GROUP
MEMBERS

LIÊN XUÂN THANH ĐÔNG

INTRO AND Q5 Q3 AND Q4

PHI YẾN ,,
PHUONG UYÊN

Q1 Q2
 WHAT IS BREXIT?
Brexit is a combination of two English words:
'Britain' and 'exit,' and it refers to the United
Kingdom's (UK) withdrawal from the
European Union (EU). The UK is the first and
so far only sovereign country to have left the
EU, after 47 years of having been a member
state.
BACKGROUND
• The UK was not a full member of the EC

when it entered the EU.

• The EU has enabled European countries to

share prosperity, but also face downturns

together.

• The 2008 economic crisis led to a surge in

the UK's foreign-born population, with 77%

believing immigration levels should be

reduced.

Motivates the UK to leave the EU.

1.Why are there labor shortages curently in the uk? It is because of COVID-19 or
Brexit or both?

• The UK is facing labor shortages due to COVID-19 and

Brexit.

• Covid-19

a. People go on strike due to inflation.

b.Covid 19 has disrupted migration and migration flows:

 a. People go on strike due to inflation:

• Prolonged double-
digit inflation
• Wages have not kept
up with inflation.
• Many factories and
many people went on
strike for benefits and
increased wages
.
 b.Covid 19 has disrupted migration and migration flows:

• There is a high number of immigrants

• Complicated registration papers.
• The major sectors of immigration are: agriculture and health.
 BREXIT

• Brexit makes it impossible for EU citizens to move freely.

 c.Brexit makes it impossible for EU citizens to move
freely.

• Under EU law citizens have the right to move freely in the countries of the European
Union.
• UK leaves EU-> EU residents cannot come to UK.
2.How will the labour shortage
impact the UK and the global
economy (short and long run)?
 UK

Short and long term

LABOUR
SHORTAGE Global economy
Short and long term
 Special Impact on Sensitive
Inflationary Industries*
pressure

Short -term
UK
Increasing labor costs
Reduce production
and increase costs
 A decrease in
the supply of
labour leads to
an increase in
wages
 Special Impact on
Critical Industries
Short term Supply Chain
of global
economy Disruptions
Increased Competition for
Workers
 Hamper Increase public
productivity growth spending

LONG-
Increase TERM OF
Reduced labour
inflationary THE UK
AND supply
pressures
GLOBAL
Reduce tax ECONOMY Digitalization and
revenues automation
For example, this sign has been hanging in a hotel in the UK for a long time but has not yet
recruited staff.
Inflation in the UK soars in 2021, possibly partly related to labour shortages
3. In what ways do you think the lack of EU membership of the UK will affect it. British
businesses ii. International businesses in the UK (give example of different sectors)?

a.The UK economy is greatly affected by Brexit

• People and businesses are subject to tax rates that

were previously supported by the government.

• Millions of employees lost their jobs and the

economy could lose up to £100 billion over the
next five years.

• Pound will depreciate about 20%.

3. In what ways do you think the lack of EU membership of the UK will affect it. British businesses
ii. International businesses in the UK (give example of different sectors)?

b.Politics

• Become weaker at the negotiating table and

no longer play a role in leading important
decisions.
• It takes a long time to renegotiate trade
agreements with more than 160 WTO
members
• -Loss of free trade with EU countries.
4. In what ways does lack of EU membership affect the UK’s global position in
terms of political strength and economic strength?

a. The UK benefits of being a member of the EU:

• Not being subject to taxes and quotas for goods

and services
• Customs union within the EU
• Trade in goods within the EU
• Access to markets outside the EU through EU
FTAs
• When Brexit happen => Britain export goods
fall 14% stands in contrast to 8.2% rise for rest
of the world.
4. In what ways does lack of EU membership affect the UK’s global position in
terms of political strength and economic strength?

b. UK immigration policy reduces low skilled

workers.

• Major impact on the supply chain of petrol and

retail products as HGV drivers from European
countries leave the UK
• -The severe shortage of workers forced the
government to issue temporary visas to attract
workers back to work for the UK but that was not
enough.
• => As a result, the British economy was affected.
 4. In what ways does lack of EU membership affect the UK’s global position in terms of
political strength and economic strength?

c.Brexit has proven to be the most disastrous for

British politics when:

• Congress, parties and people are divided and

polarized.
• Initiating a series of political developments in
England
• There is doubt about the damage caused by the
political process when the leadership is not able
to move the country in a certain direction.
• Confidence in the way the country is run has
been reduce
5.In your opinion, was Brexit a good idea?

- Brexit will have both positive and negative consequences for

the EU and England.

• Brexit provides the UK with an opportunity to form a new

alliance with Asian economies and lower its trade barriers,

especially in agriculture. (Busch and Matthes, 2016).

• Britain will need to attract investors and face currency

depreciation due to Brexit. ( (Dhingra & Sampson, 2016).

• Brexit will create a barrier for both EU and UK economic

entities in the market.

Reference list
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