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The United Kingdom’s resolution to exit from the European Union, commonly known as Brexit, could have significant consequences for its agriculture sector and its food systems as a whole.
The Sterling Pound is referred to as the official currency of the UK. There is a growing fear that it may lead to a global financial crisis and the rise of right-wing racists. We will try to cover everything you need to know about Brexit, its impacts and the Brexit uncertainties here.
What Is Brexit?
Brexit is the process of Britain leaving the EU. It is also known as “Britain’s Exit” or “The Great British Leave-In.” In 2012, the United Kingdom voted to leave the European Union. Since 2012, there have been many debates about what exactly the UK should do after it leaves the EU. The Brexit debate has divided people across the world. Some people are worried about the economic impact on the UK, while others think it could be good for the country.
European Union
In 1957, the EU was a political and financial union. It advanced over a long time and reached its present version in 1992. There are fifty-one nations in Europe, out of which 28 countries have signed a treaty to emerge as part of the European Union. The EU treaty established a European Parliament and European Council representing the member states. EU contributors account for 16% of global imports and exports. It is the biggest trading bloc in the world.
Drastic Effect on the Indian Economy
There are several impacts of Brexit. It will have a drastic effect on the Indian economy. India will have to make a lot of changes in its economy to adapt to the changing global order. This includes foreign fund outflow and a dollar rise, depreciation of the rupee, and so on. These may increase inflation further, impacting various sectors, including gold, electronics, and others. The government has been trying to reduce the country’s current account deficit by increasing the supply of gold and oil.
After Brexit, the Sterling Pound may lose value, affecting the foreign reserves of India. If a contract was agreed upon in the Sterling Pound, then a lot of money could be lost for British companies who have already signed off on deals with firms. If there is a dip in the Sterling Pound, it will lead to a decrease in foreign remunerations as well.
What Does Brexit Mean for Britain?
As per the International Monetary Fund (IMF), Britain’s economy will shrink by almost 5%. By 2030, Brexit could mean the country’s financial system will be between 3.8% and 7.5% smaller. The Sterling Pound may drop by 20%. The imports of the UK from the EU have been declining by more than 25% as compared to the rest of the world. The exchange rate of the Sterling Pound has fallen significantly. Due to lower tuition fees, international students may prefer to study in Britain as compared to other European universities. Citizens from the EU nations living in Britain will have to update their immigration status.
What Does Brexit Mean to the World?
As the UK prepares for Brexit, economies that trade with the UK will be affected. The impact on these economies depends on whether they are export-led or import-dependent (United States). Brexit could have a direct impact on Asian economies. In the short term, however, this impact is likely to be small because, as a percentage of GDP, exports to the UK are less than 2% for most economies. The biggest impact in the region may come from the impact on specific industries and sectors – particularly those with extensive cross-border sales like Japan, Korea, and India.
Conclusion
The UK’s decision to leave the EU has prompted numerous concerns and uncertainties among foreign students and companies operating there. Brexit might lead to increased competition for foreign students in UK universities, who may see Britain as a cheap education option. The law would also be changed so that citizens from EU nations may not be able to work in Britain as before; they would have to apply for a new visa if they want to stay after Britain leaves the EU.
