By this time everyone has heard of BREXIT. You’ve seen the headlines that read BREXIT, EU Divorce, British Pound Drops, Global Market crisis and more. But what does this really mean. If you’re like me, you probably didn’t know that there was so much tension between the UK and the EU. Here are a couple highlights about BREXIT.
What is BREXIT?
BREXIT is the term that is being used to describe Great Britain voting to leave the European Union (EU).
What is the European Union?
“The European Union is a unified monetary body that seeks to balance the needs of its 28 member countries, all of whom are independent fiscal and political entities. The EU eliminates all border controls between members. That allows the free flow of goods and people (except for random spot checks for crime and drugs). The EU transmits state-of-the-art technologies to its members in environmental protection, research, and development, and energy.” (— USEconomy.about.com)
On June 23, 2016 Great Britain, in a very close vote, chose to leave the European Union. Great Britain or the United Kingdom is composed of England, Scotland, Wales and Northern Ireland. What is interesting is that Scotland has actually voted to stay in the EU so it will be interesting to see how everything plays out. The separation of Great Britain and the EU will not take place for another 2 years, so the negotiation of the agreement has time to be figured out.
What’s interesting is that Great Britain is basically having to create their own government all over again. They have been under the structure of the EU for so long, there will be a need to create rules and regulations of their own.
What does this mean for American Citizens?
For one, the stock market plummeted the day after the vote came in. So be careful how you are investing your money. If you are looking to purchase real estate in Great Britain you should hop on it now! The British Pound has decreased and it can be a buyers’ market! One of the reasons I have not been out to the UK is because I hate the fact that my American Dollar means nothing! Now it won’t hurt so bad to take a nice vacation across the pond! BREXIT may hurt America’s economy due to trade dealings. “The The U.S. exported $56.4 billion worth of goods to the U.K. in 2015, and imported $57.8 billion worth from the U.K.” (Daily Signal).
All in all. Make sure you pay close attention to the news to stay up to date on what’s going on in our world!