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  • Essay / Brexit: assessing the costs and benefits - 1304

    Some international companies based in EU member countries will move their headquarters outside the UK. Additionally, the UK will lose high-level foreign direct investment. Given that some EU-based companies, or those that do large business with Europe, are very likely to relocate their headquarters to the EU, the UK will gain significantly less tax revenue. Some may say that at present the EU economy is not promising either, especially with the large number of refugees, unemployed and the Greek financial crisis, leaving the EU could be a better choice. However, they failed to understand that leaving the EU would also cause a significant shock to the financial market. After the announcement of Brexit, the pound sterling reached its lowest level in thirty-one years against the US dollar. More than a hundred billion pounds have been wiped from the FTSE 100. British taxpayers have lost eight billion pounds on RBS. The UK also lost its AAA rating. This is clearly a nightmare for the entire financial market, and there is no guarantee that the market will return to stability. In addition to this, the issue of employment is also an important problem. Although immigration controls will create more job opportunities for local English people, leaving the UK will also result in the loss of more than three million job opportunities overall. Behind these figures, it not only means that Britons will not get more jobs, but also