The UK conducted the referendum where they voted to exit or remain in the European Union. The leave was won by 50.1% to 48.1%. After the referendum the prime minister, David Cameron resigned and succeeded by Theresa May. However after favouring the decision by the public to exit the EU, there followed a period to which transition was to take place up to 2020 (Ronalds, 2016). The Brexit was viewed by many leaders all over the world has to be a dangerous step as it would greatly affect the relation of Britain with the countries within the European Union. The exit by the UK has been debated by most countries and leaders hence the magnitude of the consequences has thus been uncertain and unpredictable and as a result has caused disparities in the impacts (Srivastava, 2016).
However, before the exit, the UK and EU were involved in negotiations which were done for two years before the exit. Various concerns were raised from both sides and they revolved around trading. The UK never wanted to continue favouring unlimited EU immigration and thus also the status of the EU members living in the UK (Smales, 2016). The negotiations also further ensured cash settlement by the UK and she demanded custom unions. The country also addressed their concern of withdrawal from the European court system. Therefore UK withdrawal leads to certain consequences that range from the economic to the free immigration as adopted by the EU (Ronalds, 2016). The Brexit posted an impact in the app development for digital business.
When assessing the financial impact of the Brexit to the UK, the fact that the UK had not adopted the EU currency has to be considered. The UK, therefore, has been operating under an independent currency (Smales, 2016). Studies show that in the estimates of Europe that the United Kingdom provided protectionism at the point of the exit which could cause about 2.2% GDP by 2030. Therefore if economic openness is embraced the UK would outdo EU as it would add about 1.6% to the income of the country by 2030. The Brexit has two major trading periods which transpired after the referendum. The pound, however, experienced the biggest loss (Srivastava, 2016). There exist major uncertainties amid the attempt of the economy to evade a sudden slow down vote. It has also caused market volatility even in the African countries.
The Brexit has also influenced the immigration of the members of the EU. However, the immigration rate, may not change rapidly after the Brexit. This program of immigration was the major issue as to why the voting was done.in the control 9f the immigration, the UK could pose restrictions that would otherwise limit the migration of people into the state and even out of state. However, the government would gain the authority to impose a different immigration policy (Smales, 2016). As much as the idea of immigration was the major issue for the exit, various groups and firms are at stake as they argue that Britain is being a less attractive place for the kind of professionals they require. These involve engineering, health care and construction. The case studies also show that in the European Union economies, the British are less likely to make a priority the investments that would otherwise lead to the improvement of the production efficacy.
The process of exit however caused political uncertainties. This was first observed by the resigning of the prime minister D. Cameron. The prime minister. The news after his resigning came after three months of his step down from his job as a leader. In his message to his successor, he mentions to the successor to Theresa to stop representing his constituency (Sow, 2016).
The exit from u has greatly affected the technology and the digital sector. This has posed a greater threat as they would have been able to recruit and train individuals to thereby retaining talented individuals from the EU. As a matter of fact, the talented individuals from the UK are seen to be limited in number as compared to the demand for the products (Srivastava, 2016). The issue of limited talent supply thus still stands as a challenge in the production of the products. However, when viewed in a positive manner as some of the analysts in the UK found out, the Brexit also has offered the opportunity to innovations in the country. Consequently, the Brexit also vies as freedom from the EU ties (Smales, 2016). This would ensure facilitation of the innovations in the state and thereby make the state more attractive to those who are startups.
The prime minister, d. Cameron and his chancellor among others predicted that there would be an economic crisis upon voting or the exit and so it was experienced by an immediate crisis in the pounds. As a matter of breaking the tariffs, Britain ran at a loss due to the low costs of exports (Srivastava, 2016). Tariffs raise the value of exports, making the firms in the UK more competitive and are at higher prices ranking. However in the attempt to impact labour markets. The United Kingdom would be rendered free from the restrictions imposed by the European unions. This enables the state to exercise flexibility in the labour markets. On the other hand, Britain would not agree with the free movement of people and therefore has adopted policies that ensure that there is controlled a number of the skilled personnel entering the country.
Srivastava, Spriha, ‘Brexit tragedy no longer look like a’fait acompli’: Soros,’ CNBC, 30 June 2016. HTTP://www.cnbc.com/2016/06/30/brexit-‐is-‐a-‐negative-‐shock-‐Soros.html [accessed 21 July 2016]
Sow, Mariama and Amadou Sow. ‘The Brexit: What implications for Africa’, Brookings Institute, 21 June 2016.http://www.brookings.edu/blogs/Africa-‐in-‐focus/posts/2016/06/21-‐ Africa-‐brexittrade aid-‐economy-‐sow-‐say [accessed 21 July 2016]