Class name: BEC2014
Course name: International Trade and Finance
YEAR: TWO
SEMESTER: SIX
LECTURER: Mr. abdiladif yasin
SUBMISSION DATE: 16-jully-2016
RESEARCH TITLE: Trade advantages and disadvantages of British exit
from EU
Group four members
no Student name Roll no
1 Mohamed said salad BEC//2014
2 Abdullaahi Ali Abdullaahi BEC/163/2014
3 Ahmed Abdirahman Ali BEC/165/2014
4 Abdikani Farah Ali Bec/205/2014
5 Fathia mohamuud jama BEC/204/2014
Introduction
The European Union is a political and economic partnership that
represents a unique form of cooperation among 28 members states.
European integration project has economic sectors, a custom union,
a single market in which goods, people and capital move freely.
Common trade policy, common agricultural policy, and many
aspects of social and environmental policy and common currency.
EU membership influences the UK economy in a number ways. The
most important effects arise through the single market.
About the European union:
The European Union is an international organization made up of 28
European countries.
It governs common economic, social and security policies of its
member states.
Membership is open to any country with a democratic government, a
good human rights record, and sound economic policies.
Decisions and procedures stem from treaties ratified by the member
states.
Cont..
The capital of the European Union is Brussels, Belgium.
The EU is run by five main bodies: European
Parliament, Council of the Union, European
Commission, Court of Justice, and the Court of
Auditors.
An estimated 508.2 million people lived within the
European Union in 2015.
Objectives of EU
to establish European citizenship.
To ensure freedom, justice and security.
promote economic and social progress.
To assert Europe's role in the world.
Benefits of trading in the European Union
The main benefit of trading in the European Union (EU) is the European single
market. It is the largest international single market in the world, which has lead
to:
greater competition in services - which is good for businesses and consumers
removal of trade barriers
reduction of business costs
greater business efficiency
elimination of anti-competitive practices - such as monopolies and cartels
Trade advantages of British exit from EU
Without the EU, Britain can independently pursue international trade
deals with China, India and the US.
Leaving the EU would result in an immediate cost saving, as the
country would no longer contribute to the EU budget, argue Brexiters.
UK strikes a FTA with the EU, pursues very ambitious deregulation
of its economy and opens up almost fully to trade with the rest of the
world, Open Europe estimates that UK GDP would be 1.6% higher in
2030 than if it had stayed within the EU.
Cont..
Some estimates suggest the total economic cost of
EU membership is around 11 per cent of UK
annual GDP – which is £200billion.
Brexiters say this money would be better spent on
new British industries and scientific research.
Trade disadvantages of British exit from EU
Leaving the EU would result in an immediate cost
saving, as the country would no longer contribute to
the EU budget, argue Brexiters.
The EU is a single market in which no tariffs are
imposed on imports and exports between member
states. "More than 50 per cent of UK exports go to EU
countries.
Continue………………….
where the UK fails to strike a trade deal with the
rest of the EU and does not pursue a free trade
agenda, Open Europe estimates that UK GDP
would be 2.2% lower in 2030 than if the UK had
remained inside the EU.