Brexit refers to the referendum held on June 23rd, 2016 where the people of Britain voted in favour of the country exiting from the European Union.
The long term effects of such a decision will be felt across a global basis and not just restricted to the United Kingdom and the European Union.
The monetary effects of such a historic decision has already led to the downward spiral of the pound sterling leaving it at its lowest level since 1985 and forcing the resignation of a sitting Prime Minister.
The invocation of Article 50 which will trigger the activation of exit measures on the ground will be deferred until next year so that a proper analysis can be done in the meantime. Once Article 50 has been formally invoked, it will give the United Kingdom 2 years to handle exit logistics before a formal expulsion from the E.U.
From an economic standpoint, Brexit has had some immediate shortcomings. The pound sterling has fallen to its lowest level since 1985 and Britain has lost its premier AAA credit rating.
The country will also have to draw up new trade agreements not only with countries within the E.U. but also the world at large.
Foreign trade investment within the U.K. is also likely to be affected if investors no longer have access to the European Union’s “single market” business model.
On the flip side, the Brexit vote will augur well for exporters who had been adversely affected by the strong value of the sterling pound before the vote.
Also Britain will be spared from making contributions towards the E.U.’s common budget platform, saving the British economy substantial financial exposure.
There will however be immigration issues concerning the treatment of British expats living within the European Union and vice-versa.
Britain will however have more control over immigration rules concerning entry/exit protocols into Britain and measures on how to improve internal security levels.
Brexit will reduce the pressure on the National Health Service and free public sector educational institutions thereby allowing them to improve quality levels. Brexit will prevent the free entry of professionals into the United Kingdom especially in sectors with identified skills shortages.
The academic world will also suffer from the aftershocks of Brexit. European students will cease to have access to fees capping and state funded loans. In the long term, this may lead to a drop in student registrations. In a situation where 14% of annual student registrations at U.K. universities are sourced from students outside of the European Union, Brexit may lead to a further fall in the no. of foreign students who may view the referendum as a sign of hostility towards immigrants.
Also Brexit has led to complications in terms of the border control agreement with France. The United Kingdom will now implement Border Control Policies at the port of Dover instead of in Calais.
Political bigwigs have also suggested the designation of London as a city-state (similar to Singapore) with its own set of protocols which allow it to remain within the European Union.
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