Brexit - Financial Market & Institutions
In June 2016 majority of British citizens voted to withdrawal from the European Union (EU). Since then there has been immense debate over the impact of the withdrawal on the UK, other EU countries, and the EU as a whole. One of the areas where the withdrawal may have a devastating impact is the trading market. Focusing on the market perspective, this essay discusses the impact of Brexit on the trading market. The essay also considers the implications of the exit on the pound.

UK's trading market occupies a crucial position in the economy of the UK, the EU, and the world at large, meaning that Brexit could have catastrophic impacts on the market. Contrary to what many expected, the stock market was insignificantly affected following the referendum. Nonetheless, this does not necessarily mean that the outcome would be similar if Brexit actually happens. According to…...

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References

Blitz, R. (2017, March 13). What will happen to the pound when Article 50 is triggered? Financial Times. Retrieved from aa5b-6bb07f5c8e12https://www.ft.com/content/69abb394-05be-11e7-

Brinded, L. (2017). Brexit is killing the pound but its having a really productive side-effect on Britain's economy. Retrieved from   institute-brexits-impact-on-the-pound-uk-economy-jobs-2017-4?IR=Thttp://uk.businessinsider.com/adam-smith -

Stevenson, E. (2017). The road to Brexit: what next for shares, sterling and property? Retrieved from   propertyhttp://www.cityam.com/260523/road-brexit-next-shares-sterling-and -

Brexit on United Kingdom (UK) economy
The June 23 Brexit vote has undoubtedly shaken the European policy, and impacted the UK economy in ways that are both known and yet to be unraveled. Amid the impacts of the Brexit vote, one sure thing is that the vote has led to significant uncertainty on the future of the European integration process (Fichtner et al., 301). Specific to the UK economy, the Brexit vote is expected to have both short-term and long-term effects. Soon after the vote, there was an increased uncertainty on the prospects of the UK. This considerable increase in uncertainty has been reflected in the rather unstable pound. This essay is based on the argument that, Brexit will harm the UK economy in the short-term but be beneficial in the long-term. Therefore, the essay focuses on the negative effects of Brexit to the UK economy in the short-term and…...

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Works cited

Bachmann, R., Elstner, S. & Sims, E.R. "Uncertainty and Economic Activity: Evidence from Business Survey Data." American Economic Journal: Macroeconomics 5(2), (2016), 217 -- 249. Web.

Buiter, W. et al. The implications of Brexit for the rest of the EU, Vox. (2016). Web.

Fichtner, Ferdinand, et al. "Brexit Decision Is Likely To Reduce Growth In The Short-Term." DIW Economic Bulletin 26/27 (2016): 301-307. Web.

Woodford, THE ECONOMIC IMPACT OF 'BREXIT': A report by Capital Economics for Woodford Investment Management, (2016). Web.

Emerging Issues: BREXIT - Impact on Developing Countries Emerging Issues: BREXIT - Impact on Developing CountriesBrexit is an abbreviation term used to refer to British exit from the European Union following the decision through a vote on 23rd of June 2016. As a result, new trade policies were designed to look into the United Kingdoms new strategic interests (Adeoye, 2021). The majority of Brexit supporters have claimed the need to redefine UKs role in international politics, with trade at the core. British have henceforth been engaged in negotiating trade agreements to pursue national interests and retain global leadership (Moradlou et al. 2020). This is done through international development assistance to lure most developing countries into trade agreements with the UK (Pounder & Wollenberg 2020). Besides, most of the UKs global leadership is due to its link with the developing countries. Also, before Brexit, the UK has been advocating for the…...

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References

Adeoye, B. W. (2021). The Effect of Brexit and the European Union on Markets in Developing Countries. Tanzania Economic Review, 10(2).

Kohnert, D. (2020). The impact of Brexit on Africa in times of the Corona Crisis: The case of South Africa, Nigeria, Ghana, and Kenya.

Moradlou, H., Fratocchi, L., Skipworth, H., & Ghadge, A. (2020). Post-Brexit back-shoring strategies: what UK manufacturing companies could learn from the past?. Production Planning & Control, 1-18.

1
Few people expected Brexit to happen: analysts and investors indicated that the referendum would fail. Even Farage exhibited little optimism. The general public seemed to give off a different air, saying little in terms of which they intended to vote or at least not letting on in the polls that they were moving decidedly towards Brexit. In private, much of the public was supportive of leaving the EU but because of public tensions, including the murder of a PM by a crazed anti-EU Brit, much of the general public was tight-lipped—and so the results of the election surprised everyone.
2
The financial markets acted panicky initially. Gold spiked; the pound dropped against the Euro (Bird, 2017). However, markets soon reassessed the situation and once the initial panic subsided, gold reversed and both European and U.S. markets improved; only Sterling remained weaker, post-Brexit (Nixon, 2017). In the UK, mining companies were the biggest…...

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References

Bird, M. (2017). Can Sterling hit parity with the Euro? WSJ. Retrieved from

 

Cox, J. (2016). A week after Brexit panic, investors are buying everything. CNBC.

Retrieved from  https://www.cnbc.com/2016/07/01/a-week-after-brexit-panic-investors-are-buying-everything.html 

Nixon, S. (2017). Markets risk shock if no Brexit deal is struck. WSJ. Retrieved from

 https://www.wsj.com/articles/markets-risk-shock-if-no-brexit-deal-is-struck-1500830461 https://blogs.wsj.com/moneybeat/2017/08/16/can-sterling-hit-parity-with-the-euro/ 

 

dated after May 2016, you have read that provides a real world example of a class topic: foreign exchange market (spot transaction, forward transactions, forward change swap transaction), cross rate, arbitrage, triangular arbitrage, forward contracts, parity conditions, law of one price, purchasing power parity, real exchange rates, fisher effect, international fisher effect, interest rate parity, covered interest arbitrage, uncovered interest arbitrage. Choose any article which includes any of those topics, also it should be dated after May 2016 and it should be Wall Street Journal article. Include the title of the article and the date it appeared in your summary.
The article chosen is from the Wall Street journal and it is about Brexit and the perceived or actual effects in the market in light of that vote. Indeed, currency valuations and other things in the international markets swung greatly from the Brexit vote alone and this is curious given…...

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Reference

Nelson, F. (2016). Brexit: A Very British Revolution. WSJ. Retrieved 27 October 2016, from  http://www.wsj.com/articles/brexit-a-very-british-revolution-1466800383

Brexit
Introduction

On June 23, 2016, a referendum was held in the United Kingdom, where voters were asked to decide between remaining in the European Union or leaving it. The vote was close – 51.9% voted to leave and 48.1% voted to stay, and the turnout was 71.8% (Hunt & Wheeler, 2018). The terms of the vote were that the UK was to leave the EU by March 29, 2019, and at present the EU is in a transition period leading up to what is known as "Brexit."

Why Brexit?

There are a few issues worth unpacking with respect to why the UK is leaving the EU. The short answer is that a referendum was held, and the vote was to leave, so the politicians in charge believe that they are obligated to leave. The long answer is quite a bit more complex.

The UK was not part of the original European Economic Community, and…...

Potential Titles
The Potential Effects of Brexit on the European Union

Why Did the UK Voters Approve Brexit?

Developing Post-Brexit Trade with the European Union

Topics

The Economic and Political Impact of Brexit

The International Implications of Brexit

Should the UK Reconsider Its Brexit Decision?

The Pros and Cons of the Brexit Decision

Outline

I.  Abstract

II.  Introduction

III.  Body

A.  Background and overview

B.  Immediate after effect of Brexit vote

C.  What the future holds

IV.  Conclusion

Abstract

In June 2016, voters in the United Kingdom approved the so-called “Brexit” referendum, signaling the withdrawal of the British Commonwealth from the European Union. Although a number of economic indicators experienced a short-term downturn after the Brexit vote, most indicators have returned to their pre-Brexit levels and some have even improved. There are also other signs that the devastating consequences of the Brexit initiative will not materialize and there is a growing consensus that even if the UK does experience some challenges in the post-Brexit era, things are not…...

One of the greatest blows to the European Union has been the vote of one of the Union’s key members, Great Britain, to exit the EU in a measure known as Brexit. The resolution was passed by only a slim majority of the British public. Concerns about the stability of the Union as the United Kingdom begins to make its slow break from the fold were heighted recently, according to John Cassidy’s 2018 article in the New Yorker: “Boris Johnson’s Resignation Can’t Disguise the Harsh Reality of Brexit.” Two critical negotiators for Britain, David Davis, the Secretary of State for Exiting the European Union and Foreign Secretary Boris Johnson, resigned from Prime Minister Theresa May’s cabinet, accusing her of allowing for too many concessions. There are concerns within Britain’s Conservative Party of embarking upon a so-called “soft” Brexit that does not sufficiently extricate Britain from its responsibilities to the European…...

Brexit: The Causes of the British Vote to Leave the European Union
Brexit was the referendum vote that saw the United Kingdom pull out of the European Union. The European Union (EU) is a 29-member state egional Trade Agreement bringing together various European nations. The formation of the union saw the elimination of most barriers to the movement of labor, capital and goods between the member states. It harmonized the laws, rules and standards regarding trade amongst member nations. Most of the member states use the Euro as their currency except for Britain (ies, 2016).

The Brexit referendum had been organized on 23rd June 2016, and the issue in question was whether or not the UK ought to leave the EU. 17.41 of the voters voted for Leave while 16.41 voted for emain. There was a political design to the referendum where the then Prime Minister, David Cameron, hoped that the results…...

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REFERENCES

Aspaker, A., Denver, D., Garnett, M., Runcimann, D., Barber, S., Lord., C., Wright, N., Todd, J., O'Hara, G., Hertner, I., & Harvey, M. (2016). The Brexit drama and the dawn of a new era. Journal of the British Politics Society, Norway, 11(3), 1-24. Retrieved from  http://www.britishpoliticssociety.no/British%20Politics%20Review%2003_2016.pdf 

Chu, B. (2016, June 26). Why did people really vote for Brexit? If we don't face the psychological reasons, we'll never bring Britain together. Retrieved June 20, 2017, from Independent:  http://www.independent.co.uk/voices/brexit-eu-referendum-why-did-people-vote-leave-immigration-nhs-a7104071.html 

Cutts, D. (2016, June 29). Brexit! The Result and Its Implications. Retrieved June 20, 2017, from E-International Relations:  http://www.e-ir.info/2016/06/29/brexit-the-result-and-its-implications/ 

Offe, C. (2016, December 9). Brexit and the Weaknesses of Referenda. Retrieved June 20, 2017, from Global Policy Journal:  http://www.globalpolicyjournal.com/blog/09/12/2016/brexit-and-weaknesses-referenda

Introduction The people of the UK voted to leave the EU in 2016. Article 50 was submitted in March 2017, and discussions since then have focused mainly on how England would trade with the EU once it was formally no longer a member of the EU. Much of the hand-wringing done since then has been over how Britain would manage the separation: would there be a “soft deal,” a “hard deal,” no deal, a delayed deal? The questions continue to be asked, so it is important to understand what is at stake in each case. This paper will examine the ramifications of the various possible outcomes of what has come to be known as Brexit.
Possibilities
Understanding what is at stake first requires an understanding of where the UK currently sits with regard to trade arrangements. Currently, the UK’s trade relationship with the EU is not supportive of protectionist trade policy. The recent…...

Financial Firms On December 11th, parliament will make a decision on whether or not to accept Britain’s withdrawal agreement with the European Union. What are the ramifications for businesses, most specifically financial firms? From a PESTEL analysis perspective, it is important to note that financial firms ought to not only assess, but also analyze the relevant macro-environmental factors likely to impact the way they do business. Four factors will be taken into consideration in this discussion, with the context being the article; Financial Firms have Quietly Prepared for Brexit. There said factors are political, social, economic, and legal factors.
Political
This has got to do with the degree (and impact) of government intervention in the economy. In reference to Brexit, the Dec 11 parliamentary decision will impact financial firms and how they conduct business. Although an event of this nature ought to trigger uncertainty in the industry, the article argues that financial firms…...

Brexit and British Trade: Advantages and Difficulties
In June 2016, the UK voted to leave the European Union (EU). Commonly called "Brexit," the decision has raised a number of questions regarding Britain's current trading arrangements as well as possibilities and obstacles that await the UK post-EU (Hatzigeorgiou, Lodefalk, 2016). From a trade theory and policy perspective, this paper will assess the UK's current trading arrangements along with the potential advantages and difficulties it will likely face as a result of being outside the EU.

From a mercantilist trade theory perspective, Britain's current trading arrangements are based on what is good for the EU member states (Britain formerly being one of them). It is less protectionist from a nationalist point of view and the idea that a country might import less than it exports and thereby have a trade surplus. In the EU, the UK had a 24 billion pound trade deficit at…...

Trades
For AAPL, on June 20th, 2016, I sold 50 Jun17 90.00 -- to open for a total of $59,750. On, July 6, 2016, I bought them back to close at 11.55 for a total of $57,750 -- for a total gain of $2,000 minus $65 for commissions/fees.

For MSFT, on the same dates, I bought 200 Jun17 50 calls at 4.70 to open for a total of $94,000 and sold to close 200 Jun17 50 calls at 5.15 for a total of $103,000.00. Total gains on this trade were $9,000 minus $228 in commissions/fees.

For CHK, on the same dates, I sold 300 Jan17 4.50 calls at 1.15 for a total of $34,500 and bought to close 300 Jan17 calls at 1.03 for a total of $30,900. Total gains on this trade were $3,400 minus $335 in commissions/fees.

For XOM, on the same dates, I bought 200 Jun17 92.50 calls at 5.15…...

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Works Cited

Popper, Nathaniel. "The first big company to say it's serving the legal marijuana trade?

Microsoft. Wall Street Journal, 16 June 2016. Web. 21 June 2016.

Yan, Sophia; Petroff, Alanna. "European stocks sink and pound tumbles over Brexit fallout." CNN Money. 6 July 2016. Web. 6 July 2016.

Figure 1. AAPL trade.

How Has Globalization Changed International Politics?IntroductionGlobalization is defined as an intensification of cross-border interactions and interdependence between countries (Oldemeinen, 2011). In other words, it is a process by which the social, political, and economic world order depends upon integration of states around the world. It is not, however, viewed as a positive development by all. As odrik (1998) points out, the process that has come to be called globalization is exposing a deep fault line between groups who have the skills and mobility to flourish in global markets and those who either dont have these advantages or perceive the expansion of unregulated markets as inimical to social stability and deeply held norms (p. 2). Globalization, therefore, is not necessarily viewed as a win-win for all by all. Indeed, the Brexit vote in the UK to leave the EU has been described as a referendum against globalization (Colantone & Stanig, 2016).Yet,…...

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ReferencesBaars, G. (2019). The Corporation, Law and Capitalism: A Radical Perspective on the Role of Law in the Global Political Economy. Brill.Bakan, J. (2003). The Corporation. NY: Free Press.Colantone, I. & Stanig, P. (2016). The real reason the UK voted for Brexit? Jobs lost to Chinese competition. Retrieved from   S. (1993). The clash of civilizations? Foreign Affairs, 72(3), 22-49.Mukwarami, S., Mukwarami, J., & Tengeh, R. K. (2020). Local economic development and small business failure: the case of a local municipality in South Africa. International Journal of Business and Globalisation, 25(4), 489-502.Oldemeinen, M. (2011). How has globalization changed the international system? Retrieved from  https://www.e-ir.info/2011/07/27/how-has-globalisation-changed-the-international-system/#_ftn1 Rodrik, D. (1998). Has globalization gone too far?. Challenge, 41(2), 81-94.Science Direct. (2004). International politics. Retrieved from https://www.sciencedirect.com/topics/social-sciences/international-politicsSeren. (2019). Recycling rare earth metals is key to sustaining direct drive turbinesRetrieved from  https://www.windpowerengineering.com/recycling-rare-earth-metals-is-key-to-sustaining-direct-drive-turbines/ Sorkin, A. et al. (2022). Wall Street warns about the end of globalization. Retrieved from  https://www.nytimes.com/2022/03/24/business/dealbook/globalization-fink-marks.html Vietor, R. H., Rivkin, J. W., & Seminerio, J. (2008). The offshoring of America. Harvard Business Review, 9-708-030.https://www.washingtonpost.com/news/monkey-cage/wp/2016/07/07/the-real-reason-the-u-k-voted-for-brexit-economics-not-identity/ Huntington,

ole of the European UnionBackground to Its Formation and MembersThe European Union (EU) came about as a result of six countries banding together for economic purposes. These six countries were France, West Germany, Belgium, Italy, the Netherlands, and Luxembourg. They responded to the Schuman Declaration, which called for an industrial and economic union of powers in Europe within the framework of a supranational community of states. It was aimed at being one part for economic growth and one part for stability and security. Security was important to the EU because WW2 had just been fought in Europe and had caused much loss. The first treaty to really put forward the case for a European Union was the Treaty of ome in 1957, which stated a need for an ever-closer union among the peoples of Europe (Bagnai et al., 2015). Other treaties followed, including the Masstricht Treaty and the Treaty of…...

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ReferencesBagnai, A., Granville, B., Soy, A. (2015). The Economic Consequences of Greece. Project Syndicate. Retrieved from   (2016). Zimbabwe and the EU. Retrieved from https://eeas.europa.eu/delegations/zimbabwe_en/1867/Zimbabwe%20and%20the%20EUEU Sanctions. (2021). Retrieved from  https://www.europeansanctions.com/region/zimbabwe/ European Commission. (2021). An ever closer relationship with Africa. Retrieved from  https://ec.europa.eu/international-partnerships/system/files/20210518-paris-summit-factsheet_en.pdf Peterquin, S. (2022). France takes EU reins with push for more sovereignty. Retrieved from https://www.wtnh.com/news/international/france-takes-eu-reins-with-push-for-more-sovereignty/Scott, R. (2016). Brexit: The end of globalization as we know it? Retrieved from  https://www.epi.org/blog/brexit-the-end-of-globalization-as-we-know-it/ Teller Report. (2021). EU Indo-Pacific Strategy Announced Strengthening Economic Relations Focusing on Ship Dispatch. Retrieved from  https://www.tellerreport.com/news/2021-09-16-eu-indo-pacific-strategy-announced-strengthening-economic-relations-focusing-on-ship-dispatch.HJxqQ4b7F.html Tralac. (2018). The Economic Partnership Agreements and EU-Africa trade relations: Joint statement from EU and African trade unions. Retrieved from  https://www.tralac.org/news/article/13648-the-economic-partnership-agreements-and-eu-africa-trade-relations-joint-statement-from-eu-and-african-trade-unions.htmlhttp://www.project-syndicate.org/commentary/greece-eurozone-breakup-by-alberto-bagnai-et-al-2015-02 EEAS.

Globalization is an interesting topic because the term means different things to different people.  Globalization specifically refers to the interactions and integration of the people of the world.  There are various types of globalization, with the three main types being economic, political, and cultural.  Of course, these three types of globalization rarely, if ever, occur in isolation.  Exposure to other people, ways of life, and worldviews leads to changes in various sectors.  It is no wonder, then, that so many people find the idea of globalization to be very threatening.  In fact,....