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Question:The citizens of Great Britain voted for Britain to exit the European Union (commonly called Brexit). Comment on the economic causes, and economic consequences of this decision. That is, try and stay with the International Economics/Finance aspects of the problem in answering this question.
a. Did economists correctly predict the outcome of the Brexit vote? Why or why not?
(2 marks)
b. What were the economic reasons for why British citizens voted as they did?
Comment on whether UK was a net contributor or net recipient of funds to/from the EU, i.e., was the UK paying more to the EU, than what the UK was receiving back from the EU, or the other way round? Comment on globalisation [i.e., making UK and continental Europe a single market known as the European Union (EU from now on), with free movement of capital, labour, and goods and services], and was globalisation in the sense of single EU market economically beneficial for the UK? Comment in particular was the single EU market beneficial for the UK overall, and, was it beneficial for some but not others? (That is to say, were there winners and losers from the common market?).
(10 marks)
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