IB ECONOMICS, International Trade: The real danger of Brexit
Despite feeling limited by rules that bind the EU, leaving Europe in an attempt to reclaim its sovereignty weakens Britain’s trade relationships impacting its current account deficit as the EU takes almost half of Britain’s exports. Leaving Europe could have both short and long term implications on the British economy with financial markets recognising the dangers and the UK pound falling to its lowest value against the dollar since 2009.
What are the trade offs being part of a politico-economic union, where although countries are independent, they agree to trade under agreements made by the nations?
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