How might Brexit start another financial crisis?

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As Theresa May won the Conservative party no-confidence vote, Brexit is very likely to happen. I will explain how Brexit might provoke another financial crisis.

Investors:

If Brexit happens, Britain will lose many investors as a lot of those people are from abroad and they will prefer to do their businesses in more stable countries. Because investors are people who put money into financial schemes, property ect. with the expectation of achieving profit, those who are from abroad (or even not) will want to invest in more secure coutries. Therefore Britain might not have enough investors, and eventually run out of money.

No importing goods:

If Britain stops importing goods from other EU countries, there would not be much. Many fruits and vegetables come from different countries which are all in the EU (Poland, Spain, Portugal ect) landing into British supermarkets' shelves. This means, if Britain leaves the EU, we cannot import the goods as we will also leave the Single Market.

Travelling:

If Britain leaves the EU, it will be much more difficult to travel to different countries for vacation, business ect. It is estimated that the prices of travel will increase, and as people who live in Britain travel often, more money will be spent, which might cause a financial crisis. This point can refer to both of my previous points, as some who choose to stay in Britian might have to travel for investment requires, and some will have to try to import goods.

I think all of these reasons may lead to a financial crisis because of the money that has to be spent during Brexit.

Comments (6)

  • Olivia-Avatar.jpg Olivia @ the BNC
    17 Dec 2018

    Well done for showing such great curiosity and linking the Financial crisis topic with what is currently going on in politics. Do you think there will be a deal on Brexit, or will we forced into a no-deal situation, or, is a third option possible?

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    1. New-Horizons-logo-250x250.jpg considerate_grasshopper | New Horizons Children's Academy
      Olivia @ the BNC's comment 17 Dec 2018

      Thank you! I think at here will be a deal on Brexit because most people voted for it, and most politics actually don’t want Brexit. If the politics back out of the plan, the popularity will be disappointed and might give bad opinions on the English Government. This means it will happen so England doesn’t get a bad opinion, but for the better for people.

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  • Bruntcliffe-logo-250x250.jpg knowledgeable_pigeon | Bruntcliffe Academy
    17 Dec 2018

    British car companies are relocating. Bhis is because they are worried about another financial crisis because of trading. If the companies move abroad then they will have a more stable connection with other countries. This means that in the event of another crisis, the british currency will decline in value to other countries.

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    1. New-Horizons-logo-250x250.jpg considerate_grasshopper | New Horizons Children's Academy
      knowledgeable_pigeon's comment 17 Dec 2018

      Yes I agree. I have sort of re-worded this by saying about the goods.

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  • New-Horizons-logo-250x250.jpg steadfast_moon | New Horizons Children's Academy
    17 Dec 2018

    Do you think Brexit should happen? In my opinion, I think it shouldn’t: as you said we would lose lots of investors but also a lot of our workers that we have in the UK, and children in schools. If Brexit happens, our mayor (who is a Muslim) may have to resign his job and leave our country.

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    1. New-Horizons-logo-250x250.jpg considerate_grasshopper | New Horizons Children's Academy
      steadfast_moon's comment 21 Dec 2018

      I am against Brexit. If it didn't happen, it would not only be better for all people in Britain but for the country itself; Britain would lose investors, lose the privilege to import goods from abroad and most of all the travel costs would increase which would probably start a financial crisis again. The education system in Britain is really good (I personally think it is really helpful) and if Brexit happened, not many children would be educated as well as in Britain.

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