ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

The Global Effects of Brexit

Updated on October 30, 2017

The Global Effects of Brexit

By: Paloma Perez

Significant technological advancements, including increased communication and transportation, have made globalization and its effects inevitable. As Kofi Annan, declares “It has been said that arguing against globalization is like arguing against the laws of gravity” (The Globalist). Worldwide integration and development affects societies and communities all over the world. Globalization embodies the interaction and the integration of the global impacts among individuals, organizations, and governments internationally More specifically, this issue affects environments, politics, economic development and stability (Globalization 101).

A recent example of a globalization issue, which has created economic concern and instability, is Brexit. On June 23, 2016, the United Kingdom voted to leave the European Union. The movement has been titled “Brexit,” in substitution of “British Exit.” Voting to leave the EU means the beginning of a two-year negotiation for the UK over the terms of leaving the European Union. The European Union (EU) which consists of 27 member countries, is unified in trade and monetary policies (Amadeo). The continuous purpose of the EU is the expansion of trade. To accomplish its purpose, it has focused on eliminating restrictive economic practices and border restrictions. By eliminating such restrictions, the EU hopes to encourage the free movement of capital and labor, while nurturing a closer union among member countries (European Union). In other words, the EU’s main focus is to strengthen its’ competitive position in the global marketplace, while fairly representing all 27 member countries.

However, the United Kingdom considered the EU to have its defects. The UK expressed concerns about immigration and border security. In addition, the UK disapproved of the budgetary constraints and regulations imposed by the EU (Amadeo). The majority of individuals within the United Kingdom felt as though the UK could prosper and gain more security independently from the EU. Brexit resulted from a referendum, in other words, “a public vote of nearly all citizens of voting age; consisting of more than 30 million individuals” (Watters). After the referendum Brexit is expected to experience stricter immigration restrictions along with new economic budgetary regulations, than those applicable to the members of the EU.

Change does not go without consequences. Leaving the EU has raised concerns about financial instability, fear of recession, and lack of investment security within the UK. Brexit will affect the United States of America (U.S.), in many ways. America has manifested its economic and political will in Europe through Britain. Since Britain has left the EU it is predicted that it will be harder for America to uphold any U.S. trade agendas, digital privacy and global tax reform within Europe (Foroohar). U.S. companies, such as JP Morgan, have also grown concerned about their investments overseas (Criss). Like Goldman Sachs, many U.S. Companies such as Citigroup and JPMorgan Chase, may consider moving a significant amount of jobs from London to financial centers within the European Union (Goodman). Since Brexit, the pound has decreased in value causing a decline in consumer spending. This year for example, Brexit has experienced a significant decline in automobile sales. It is expected that the UK will continue to experience economic instability within its market due to Brexit.

Janet Yellen, current chair of the Federal Reserve Board, expressed her belief that a Brexit would have a negative impact on the U.S. economy; she predicts significant financial market turmoil (Dorfman). Chief economist Daver Berson, agrees with Yellen that there will be some financial turmoil; yet, he also believes that the effects of Brexit on the U.S. will be small and possibly even be positive (Dorfman).

While Brexit has occurred overseas, it will have a global effect. Countries such as the U.S., will be affected by the UK’s decision to leave the EU. Like companies from the U.S., other countries have invested within the UK, in order to reach the Europe market. However, due to change and uncertainty, many U.S. companies are considering leaving or have officially left the UK by moving jobs to other countries that remain within the EU. Undoubtedly, companies moving their jobs elsewhere will have an effect on the UK economy, whether it is big or small. Overall, the UK will be affected in several ways including but not limited to changes within their economy, as well as the adoption of new trade regulations and immigrations policies. While many predictions have credible basis, the effects that Brexit will have globally are unpredictable and create uncertainty. However, after two years of negotiation, the outcomes of the Brexit decision are soon approaching and will become globally.

Works Cited

Amadeo, Kimberly. “How Europe Became an Economic Powerhouse.” The Balance,

Criss, Doug. “5 Reasons Why Americans Should Care about Brexit.” CNN, Cable

News Network, 24 June 2016,

Dorfman, Jeffrey. “Brexit Will Probably Be Good For U.S. Economy.” Forbes, Forbes

Magazine, 24 June 2016,

European Union. (2016). The Hutchinson Unabridged Encyclopedia with Atlas and Weather


Foroohar, Rana. “Brexit: U.S. Economy Impact Will Be Huge, and Here's Why.” Time, Time,

Goodman, Peter S. “Beginning ‘Brexit’ and Bracing for Impact.” The New York Times, The

New York Times, 30 Mar. 2017,

Kofi Annan on Global Futures.” The Globalist, 5 Feb. 2001,

Watters, Ashley. “What Is Brexit?” Dummies, John Wiley & Sons, Inc.,

What Is Globalization?” Globalization101, 2016,


    0 of 8192 characters used
    Post Comment

    No comments yet.


    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

    Show Details
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)