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Macro economics - Essay Example

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Prior to 2012, Britain used to possess an ambivalent relationship with EU and both the parties endeavored to put diplomatic efforts for the…
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Macro economics
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"Macro economics"

Download file to see previous pages Such announcement made by British Prime Minister gave rise to multiple speculations regarding the probable effect of such referendum on UK and the world economy. As no member nation has exited the union prior to this declaration of referendum, the degree of speculation has become more prominent. Recently, Mr. Cameron has downplayed the possibility of an early referendum on the ground that they will need more time to present better negotiations in terms of acquiring more freedom in trade relationships and other regulations. Accordingly, he announced that it will take at least till end of 2017 to draw a conclusion on EU and UK relationship. However, significant arguments have already been originated in support or against of such referendum (“Viewpoints: How experts see UK role in EU”). The paper will explore all such pros and cons of UK leaving European Union as identified by economists and politicians.
UK holds a significant part in influencing regulations and policy formulations of European Union. However, recent measures taken by UK gave rise to the question whether the country should remain a part of EU or not. In the next segment, the arguments in favor of UK to remain as a part of EU will be analyzed.
It has been observed for a long time that many European countries such as Switzerland and Norway are operating successfully in the global market without participating in EU. Both of the countries operate as single markets and do not follow any regulations or legislations incorporated by European Union in their national activities through agriculture, service sectors, home affairs etc. The countries are liable to take their own decisions regarding international trade and are not restricted by imposition of regulations by any third party. UK, in order to enjoy such freedom in enhancing their trade relations with all the emerging and economically advanced countries in the world, must come out from EU (“House of Commons”).
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