Essay on Brexit Unveiled: Causes, Prospects, and Financial Implications in Britain's Exit from the EU

Introduction

Brexit defined Britain's withdrawal from the European Union, following a referendum in 2016. A majority of the people voted for the decision supporting Britain's exit from the union, which had various reasons they endorsed. I believe Brexit is taking the right approach based on most companies' market reviews and opinions. There is a prospect of a better commercial environment for Britain's organizations, which was Brexit's primary motivation. Britain is providing an attractive environment for investors, given the challenges the European Union is currently facing. Therefore, Britain will attract more investors, which will stimulate economic growth locally. That is a sign of growth and prosperity in the country, resulting from the leaders adopting the right approach to Brexit engagement (Begg, 2017). One of the signs of tremendous economic growth is investors' attraction, which is characteristic of Britain. Therefore, when Brexit continues in the same way as it is being conducted, there are better prospects in the future.

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Causes of Brexit

There are numerous motivations behind Brexit, which led to a vote in its favor. First, under the European Union, Britain's sovereignty was continually threatened. Based on various European Union treaties, there has been a shift of authority from individual states to the body. Therefore, the states find it difficult to have their preferences incorporated into their territories' plans. Furthermore, there was an issue with burdensome regulations from the European Union. The rules were inconsistent with the economic and political preferences of Britain, which fueled its exit. Moreover, there is immigration, whereby the European Union allowed in too many immigrants (Arnorsson & Zoega, 2018). The immigration policy was contrary to the interests and preferences adopted by Britain. Inconveniences from the common currency and corporate interests that prevented reforms in Britain were the other leading causes.

Britain' Future

There is the prospect of a bright future in Britain's welfare; because of the benefits it will gain from Brexit. It will have its independent economic policies, which will attract more investors. With more investors, there will be enhanced economic growth, hence better sustainability. Furthermore, there will be the adoption of its immigration policy, which will advance its interests (De Grauwe, 2016). Britain will also benefit from having regulations to control its interests without interference from the European Union, furthering the associated benefits.

Counter Arguments for Brexit

There will be less bargaining power by Britain than when it was part of the European Union. Therefore, it might be a challenge to adopt its preferences as before when it was part of the European Union. Furthermore, there is a great deal of uncertainty about how Brexit will unfold in the future (Price, 2018). Therefore, there is a challenge in long-term plans by organizations. In the event of a hard Brexit situation, there will be trade restrictions with some European Union members, which will have adverse effects on Britain.

Brexit and Finance

Brexit relates to finance because of the resultant effect on investment decisions. When the benefits of Brexit are achieved, there will be a favorable investment environment. That will attract more investors. However, with Brexit's adverse consequences, there may be a loss of investors because it will lose investment attractiveness. Therefore, the financial implications have opposite effects on Britain's welfare.

Conclusion

Brexit has a wide range of benefits and disadvantages associated with it. There is support for Brexit and its critics, based on their interpretation of its implications. The economic implications are the significant issues that inform the opinion of its supporters and critics. In the long run, the magnitude of benefits and setbacks will determine Brexit's success.

References

Arnorsson, A., & Zoega, G. (2018). On the causes of Brexit. European Journal of Political Economy, 55, 301-323. https://www.sciencedirect.com/science/article/abs/pii/S0176268016302701

Begg, I. (2017). Making sense of the costs and benefits of Brexit: challenges for economists. Atlantic Economic Journal, 45(3), 299-315. https://link.springer.com/article/10.1007/s11293-017-9550-x

De Grauwe, P. (2016). What future for the EU after Brexit?. Intereconomics, 51(5), 249-251. https://link.springer.com/article/10.1007/s10272-016-0612-0

Price, S. (2018). Brexit and the UKAfrica Caribbean and Pacific Aid Relationship. Global Policy, 9(3), 420-428. https://onlinelibrary.wiley.com/doi/abs/10.1111/1758-5899.12558