4.3 - Signposts

Question 1

Arguments for UK membership of the EU (Arguments Against Brexit)

Answer 1

1. The UK benefits from increased trade creation + they don’t have to pay CETs
2. The EU’s large market size, make the UK a good place to invest as they are seen as a ‘gateway’ to Europe
3. Brexit has triggered a large drop in the pound
4. Leaving the EU creates uncertainty and difficulty over how to negotiate appropriately to maintan this relationship with Europe
5. The loss of immigration could hurt the UK economy

Question 2

Evaluation for this point: 1. The UK benefits from increased trade creation + they don’t have to pay CETs

Answer 2

1. This argument is heavily dependent upon UK negotiation post Brexit

Question 3

Evaluation for this point: 2. The EU’s large market size, make the UK a good place to invest as they are seen as a ‘gateway’ to Europe.

Answer 3

1. If the the UK leaves the EU, this is going to lead to lower FDI, and less investor confidence. This is significant because the UK relies on running a financial account surplus in order to finance their current account deficit

Question 4

Evaluation for this point: 3. Brexit has triggered a large drop in the pound

Answer 4

1. This could be the boost the UK economy needs to accelerate the process of rebalancing

Question 5

Evaluation for this Point: 4. Leaving the EU creates uncertainty and difficulty over how to negotiate appropriately to maintan this relationship

Answer 5

1. The likelihood of the the relationiship with Europe deteriorating is highly unlikely given how importnat the UK market is for the EU

Question 6

Evaluation for this point: 5. The loss of immigration could hurt the UK economy

Answer 6

1. Immigrants do however put pressure on key public services like healthcare, education and infrastructure