2.1 General information The big event which

2.1 General information

The
big event which happened in 23rd, June, 2016 would be seen as the landmark date
in the history of United Kingdom and global economy. Britain was voted to exit
from European Union (EU), widely called “Brexit”. Obviously, this action led to
many effects on some aspects including politics, security and economy and trade
in EU countries and related countries. Especially, global trade is influenced
largely since United Kingdom is a big importing country of Asia. When leaving
the EU, the economy of UK has been fluctuated deeply; therefore, trade between
UK and other countries all over the world also has changed so much.

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According
to the article “The impact of Brexit on global trade and logistics”, September
13, 2016, Pridel claimed that if British exit from EU, the current traffic-free
and quota free EU- UK trade may take a hit, as both sides push for limiting the
goods and services as well as impose tariffs for imports and exports. It can be
said that trade of UK has close relationship with EU so the decision to isolate
the EU can lead to the lower goods and services movement that means loss of
business to the logistics industry. British are a huge economic country and
London is supposed as a central economy; however, this economy relies so much
on European economy so it affects global trade widely. What is more, exiting
from EU make UK has to establish new relations with the EU and trade relations
also have changed so far. It is predicted that the economic growth of UK will
be reduced after leaving the EU. In the article ” Brexit- facts, fiction, and
impacts on GTM”, May 4, 2016, Claire Umney pointed out some changes of Global
trade Management (GTM) in term of Brexit such as the UK’s trade relations would
be governed by World Trade Organization (WTO) rules. This bears the drawbacks
that the EU, for instance, could apply a range of tariffs to goods traded with
the UK- in contrast to the current zero tariff benefits as part of the EU
single market.

Regarding
to global trade, it is believed that EU will not give UK a good trade
agreements as when UK was a member of EU. Definitely, EU have to tighten trade
policies with EU because if EU did not punish UK, the other European members
also tend to exit from EU to gain own freedom. In fact, after leaving the EU,
the value of British pound also sharply decreases. This is demonstrated that
global trade will be fluctuated so much since many countries looked UK as a
bridge to trade with 28 countries in EU. According to the research “Brexit
monitor- The impact of Brexit on (global) trade”, the author said that
countries were most impacted including Belgium, the Netherlands and Germany.
They are the UK’s large trading partner in term of both volume and proportion
of exports and imports. In short, it is supposed that Brexit puts the negative
impacts on global trade not only EU members but also non- EU members.