The mess of Brexit
In less than a year, the United Kingdom will be officially
out of the European Union. Majority of news or reports about the Brexit has
stated nothing good about the decision of the UK leaving the EU. Most news
reports talk about how much of a mess the UK has been making since it voted to
leave. Many of the people of the UK are thinking that this may not be a good
idea after all. They are currently seeing the negative after affects of this vote.
“The sterling pound has dropped 5% against the U.S. dollar since the day of the
UK voted to leave the EU. Sadly, because of this drop, it has caused increased
pressures on retailers to ramp up prices as the costs of their raw materials
have risen. (CNBC)”. With all these
increased prices at retailers, there has been no reports of wage increases,
which is causing people’s income to be worth less. Along with prices rising and
incomes running short, many companies are finding that these higher prices
might not be worth it and are considering moving to just having an online
presence instead. On top of all this companies and retailers are still in the
dark about what is happening in the future with Brexit. Theresa May hasn’t
given companies a solid plan on how they should move forward with business. She
said there would be a transition period where business could keep doing
business like usual but after that period, they would have to follow the new
arrangements. Retailers, companies, and the people of the UK are getting frustrated
with the little clarity of the future and the downward spiral that they are
facing.By:Blythe Derickson
Amaro, S. (2018).
It’s only a year to go until Brexit-but top UK retailers are frustrated they
can’t prepare for it. Retrieved April 5, 2018, from https://www.cnbc.com/2018/03/29/its-only-a-year-to-go-until-brexit--but-top-uk-retailers-are-frustrated-they-cant-prepare-for-it.html
From reading about these negative effects exiting the European Union has on retailers, I can understand why many people of the UK are thinking it is more of a bad thing than a good thing. It is going to be very hard for these retailers to make new adjustments to survive well off from this decision. What are some of the positives listed with exiting the European Union?
ReplyDeleteI thought that this article was very informational and interesting, I really enjoyed the read. But I'm curious if there are any positives for the U.K. leaving EU? It's sad that these professionals can't plan for the future properly and predict the consequences that leaving the EU has on its citizens.
ReplyDeleteI wonder too Jesse. If one thinks about the rationale for federalism and 'home rule' concepts in this country, it is easier to understand why some EU nations become frustrated by losing some of their sense of sovereignty as they negotiate policies that need to be acceptable throughout the EU. On one hand, leveraging the power of the whole can be good for states and nations, but to be part of a 'club' requires compromise that not every player wants.
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