British car manufacturing has boomed since last two years with firms which includes Toyota, Nissan, Mini, Morgan, Rolls-Royce and many more continuing to increase their output. This is also true that approximately 80% of all those automobiles were exported to the European Union (EU) and to other nations outside of Britain. Nowadays, the automotive industry in the United Kingdom is best known for its premium and sports car.
The EU comprises 28 member states. There is free trade between these members of EU. It is believed that despite the size, wealth and political system all the member states have equal rights but in some areas majority voting takes place where larger states have more votes than smaller ones. Since the beginning of EU, there …show more content…
Before jumping on to my recommendation, I will first provide you some information about the compelling reasons for Toyota, Nissan and Mini to have chosen Britain for manufacturing. Britain has lots of comparative advantages because of that firms like Toyota, Nissan and Mini decide to manufacture in Britain. I have described them below. Firstly, it is because of the tariff-free access to the single market. For example: if the car is produced in Britain than they can do the free trade without tariff in Europe. The labor force can also move from Europe to Britain and vice versa which will make labor cost cheaper. This …show more content…
Firstly, The European Union requires fund to run and the countries like Germany, France and the UK pay high fees because of its financial status and the fact that UK is contributing more to the EU budget than they get out of it means UK was being overcharged for membership. Nobody likes to get overcharged. Secondly, most of the decisions taken by the EU is considered to be controlled by Germany and are in its favor. Besides that, the European Commission decided that Europe would open the door to migrants from the Middle East which Britain didn’t want.
If we see it from the economic point of view the Brexit is not a right decision. The EU and UK was enjoying the benefits of free-trade and after the Brexit, to enjoy the same benefit the Britain had to pay lots of tariff. Every transaction with the member countries will be charged. It will not only slow the UK’s economy but also all EU member’s economy will go down. BREXIT effects all the nations in the European union because the firms which are established in other nations may perform low when compared to previous performance, this is due to change in trade policies between the
The EU comprises 28 member states. There is free trade between these members of EU. It is believed that despite the size, wealth and political system all the member states have equal rights but in some areas majority voting takes place where larger states have more votes than smaller ones. Since the beginning of EU, there …show more content…
Before jumping on to my recommendation, I will first provide you some information about the compelling reasons for Toyota, Nissan and Mini to have chosen Britain for manufacturing. Britain has lots of comparative advantages because of that firms like Toyota, Nissan and Mini decide to manufacture in Britain. I have described them below. Firstly, it is because of the tariff-free access to the single market. For example: if the car is produced in Britain than they can do the free trade without tariff in Europe. The labor force can also move from Europe to Britain and vice versa which will make labor cost cheaper. This …show more content…
Firstly, The European Union requires fund to run and the countries like Germany, France and the UK pay high fees because of its financial status and the fact that UK is contributing more to the EU budget than they get out of it means UK was being overcharged for membership. Nobody likes to get overcharged. Secondly, most of the decisions taken by the EU is considered to be controlled by Germany and are in its favor. Besides that, the European Commission decided that Europe would open the door to migrants from the Middle East which Britain didn’t want.
If we see it from the economic point of view the Brexit is not a right decision. The EU and UK was enjoying the benefits of free-trade and after the Brexit, to enjoy the same benefit the Britain had to pay lots of tariff. Every transaction with the member countries will be charged. It will not only slow the UK’s economy but also all EU member’s economy will go down. BREXIT effects all the nations in the European union because the firms which are established in other nations may perform low when compared to previous performance, this is due to change in trade policies between the