Brexit can be considered as the one of the biggest event happened in the international affairs which leaves its effect on several countries mostly Britain and European union.
Effects on Britain:
- Britains trade will take a hit sinces its 50% trade is with the EU countries
- Reduced investments in the short term and in long term if needed steps are not taken
- Currency volatility of sterling pound
- Migration can be regulated by Britain itself
- Scotland may bid for independence since it has voted to remain in EU
- Britain has to make trade deals with EU and other countries separately
- Britain is not required to follow the commonly EU rules on
Effects on EU:
- Brexit has the potential to influence other EU members to leave the union and it can be the trigger for the EU’s disintegration
- Currency volatility can be observed in EU currency euro
Major challenges faced by Britain before exit of EU:
- Britain should make trade agreements with individual countries and make it more attractive than EU
- Own opposition from the ruling party against brexit
- Britain is represented by EU in several international forums . Now it has to represent itself.
Brexit has more impact on Britain than the EU and Britain should take appropriate steps to handle the negative effects of Brexit.