The dairy industry would also feel the impacts of a Brexit. According to Dairy Industries International, the UK currently exports 9.3 billion pounds worth of food and drink products to the EU. Dairy Industries International also argues that leaving the EU would have a, “considerable negative impact on the export competitiveness of the UK food and drink industry” because even a small trade tariff tremendously cuts into the profits of the industry (Burnyeat 17). Leaving the Union would put the United Kingdom into, “Full competition with US, Latin American, and Oceanian suppliers” (Burnyeat 17). This full competition seriously hurts domestic job growth and economic growth of the United Kingdom, do to its loss of ‘preferential status’ with the
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Many businesses rely on the single market in order to stay competitive throughout the European Union. BlackRock, the world’s largest asset manager with over 4.5 trillion dollars worth of money under its management contend that a Brexit would seriously impede on its ability move assets within the EU. According to the chief of BlackRock, “Rules require funds to be based within the EU in order to sell to customers in the union” (Hawkes 1). If the United Kingdom were to leave the EU, it would be forced to establish subsidiaries in the EU or move its entire operations to the EU in order to conduct business with the world’s number one largest economy in the world. Furthermore, since most of BlackRock’s clients are within the EU, the company is “Not sure that the balance would remain as it is if the UK left the EU” (Hawkes 1). When companies like BlackRock are compelled to relocate to another country based on the decision on whether or not to remain in the EU, it ultimately degrades the economy and job market of …show more content…
According to a recent global study, “London is the world’s leading financial centre” (Harris 1). Part of the reason which makes the UK such an attractive place to invest is its access to the EU single market (Parliament 34). The single market allows global companies to move products into the EU and then ship them with no trade tariffs into the world’s largest economy, the EU. A recent study conducted by the Ernst and Young European Attractiveness Survey which measures financial statistics of the most popular places to invest in the EU, found that 48% of the United Kingdom’s foreign direct investment came from within the EU (Parliament 35). If the UK did leave the Union, this percentile would presumably decrease because companies based in the EU would not be able to efficiently export to their native countries because of the increased trade tariffs. Moreover, Parliament concluded that leaving the EU, “could also have implications for UK companies providing services through a commercial presence” (Parliament 36). If the United Kingdom leaves the EU, it will no longer effectively act as an export base into the EU which would prompt global companies to invest
Many businesses rely on the single market in order to stay competitive throughout the European Union. BlackRock, the world’s largest asset manager with over 4.5 trillion dollars worth of money under its management contend that a Brexit would seriously impede on its ability move assets within the EU. According to the chief of BlackRock, “Rules require funds to be based within the EU in order to sell to customers in the union” (Hawkes 1). If the United Kingdom were to leave the EU, it would be forced to establish subsidiaries in the EU or move its entire operations to the EU in order to conduct business with the world’s number one largest economy in the world. Furthermore, since most of BlackRock’s clients are within the EU, the company is “Not sure that the balance would remain as it is if the UK left the EU” (Hawkes 1). When companies like BlackRock are compelled to relocate to another country based on the decision on whether or not to remain in the EU, it ultimately degrades the economy and job market of …show more content…
According to a recent global study, “London is the world’s leading financial centre” (Harris 1). Part of the reason which makes the UK such an attractive place to invest is its access to the EU single market (Parliament 34). The single market allows global companies to move products into the EU and then ship them with no trade tariffs into the world’s largest economy, the EU. A recent study conducted by the Ernst and Young European Attractiveness Survey which measures financial statistics of the most popular places to invest in the EU, found that 48% of the United Kingdom’s foreign direct investment came from within the EU (Parliament 35). If the UK did leave the Union, this percentile would presumably decrease because companies based in the EU would not be able to efficiently export to their native countries because of the increased trade tariffs. Moreover, Parliament concluded that leaving the EU, “could also have implications for UK companies providing services through a commercial presence” (Parliament 36). If the United Kingdom leaves the EU, it will no longer effectively act as an export base into the EU which would prompt global companies to invest