Advantages Of BREXIT

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1. What is BREXIT? How does is impact Great Britain and what are the advantages and disadvantages? “BREXIT” is the process initiated by the result of the June, 2016 referendum by the British people to leave the European Union. As a result of this decision, the following has occurred in Britain: • Currency depreciation: Immediately following the vote, the British Pound depreciated against the dollar. Currently, the Pound has depreciated further. • Reduction in purchasing power: Trade relations have been impacted. Currency depreciation has resulted in imports becoming more expensive and export cheaper. Hence, the British people will be able to consume less imports. • Stock Market impact: The prices of stocks globally have responded to BREXIT.…show more content…
• Higher employment rates: As demand for domestically produced goods increase, supplies will employ more people to increase…show more content…
• Loss of motivation to innovate or achieve competitiveness by the protected companies: In the long run, protected industries may invest into retaining their protected status instead of investing in R&D. Hence, this may lead to inefficient resource allocation in the economy. 3. What is Fair Trade? Why is it important and how does it impact the economy? Fair trade practices are ethical practices which a company engages in as to become socially responsible. It is important because it can foster social responsibility and ensure that people are not being exploited. Additionally, it helps promote the idea that production and trade need to be sustainable and initiates a trend of sustainable practices so that trade can continue in the future without leaving a harsh environmental reality for future generation. Such practices can be as such: a. Fair prices: Providing a price floor for producers and ensuring a living wage; b. Fair labor conditions: Not employing child labor and following health and safety regulations to ensure safety of
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