(Tiểu luận) reportsubject money and capital markets

1.1.Beneficial of joining EUGeneral AdvantagesMembership in a community of stability, democracy, security and prosperity;Stimulus to GDP growth, more jobs, higher wages and pensions;Grow

VIETNAM GENERAL CONFEDERATION OF LABOUR

TON DUC THANG UNIVERSITY

-o0o -REPORT

SUBJECT: MONEY AND CAPITAL MARKETS

Group ID: Nguyễn Trần Châu Nghi – 720K0503

Đoàn Nguyễn Quỳnh Như – 721K0221

Lecturer: Dr Lê B;o Thy

Ho Chi Minh City, 17 October 2022

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ID Student Name Student ID % Contribution Member Score

Group Score:

Topic: BREXIT

TABLE OF CONTENTS

INTRODUCTION 1

1 WHAT IS THE EUROPEAN UNION? 2

1.1 Beneficial of joining EU 2

1.2 Economic 2

1.3 People 4

2 WHAT IS BREXIT? 5

2.1 Why the UK exit from EU 5

2.2 Results of the 2016 United Kingdom European Union membership referendum 7

2.2.1 By regional 7

2.2.2 By age 8

2.3 The consequence of Brexit 9

3 HOW WAS THE UK BEEN AFFECTED AFTER BREXIT 10

3.1 Short-term: (In 2016) 10

3.2 Long-term (5-year period) 10

4 HOW BREXIT AFFECTED THE WORLD ECONOMY 11

4.1 World (generally) 11

4.2 Big-economy 12

4.3 VN 14

CONCLUSION 15

REFERENCE 16

In 2015, the Conservative Party called for the referendum Most of the Brexit voters were older, working-class residents of England's countryside.Theywere afraid of the free movement of immigrants and refugees, claiming in theprocess that citizens of poorer countries were taking jobs and benefits.Smallbusinesses were also frustrated by EU fees Others felt leaving the EU wouldcreate jobs Many felt the U.K paid more into the EU than it received

pro-Those who voted to stay in the EU primarily lived in London, Scotland, andNorthern Ireland They liked free trade with the EU, and claimed most EUimmigrants were young and eager to work Most felt that leaving the EU woulddamage the U.K.’s global status

Brexit was the nickname for "British exit" from the EU, the economic and icy union of which the U.K had been a member since 1973 That changed on June 23, 2016, when the U.K voted to leave the EU The residents decided that the benefits of free trade weren't enough to offset the costs of free movement

pol-of immigration The vote was 17.4 million in favor pol-of leaving vs 16.1 million who voted to remain

On December 31, 2020, the transition period for the United Kingdom (U.K.) towithdraw from the European Union (EU), otherwise known as "Brexit," offi-cially came to an end This marked the end of a years-long process that wasoverseen by two different Prime Ministers, included several delays and exten-sions, and left the U.K divided

1 WHAT IS THE EUROPEAN UNION?

The European Union (EU) is a unified international organization that governs the nomic, political, and social policies of 27 member states Originally formed with thedesire to achieve peace in Europe, current EU policies are tailored to ensure the freemovement of people, goods, services, and capital among its member states

eco-1.1.Beneficial of joining EU

General Advantages

Membership in a community of stability, democracy, security and prosperity;Stimulus to GDP growth, more jobs, higher wages and pensions;

Growing internal market and domestic demand;

Free movement of labour, goods, services and capital

stat, “Intra and Extra-EU trade by Member State and by product group, ext_lt_intratrd”(accessed 13 January 2020); American Chamber of Commerce to the EU (2017), “The

EU Single Market: Impact on Member States”, Brussels

Member State economies benefit from EU membership This is mostly due to the gle Market and economic integration that leads to higher competition, efficiency andintra-EU trade volumes Similarly, the EU allows countries to have a better relative po-sition when it comes to international trade Member States currently have access toglobal markets thanks to the trade agreements negotiated at the EU level These factorshave positive effects on employment, growth and knowledge diffusion operating bud-getary balances calculations fully disregard these effects

Sin-Common Agricultural policy (CAP)

Direct payments that support farm incomes These offset the risks and uncertainties sociated with farming and are allocated on the condition that strict food safety, envi-ronmental and animal health and welfare rules are followed

as-Market measures to deal with difficult situations, such as a sudden drop in demand due

to a health scare or a fall in prices due to temporary oversupply

Rural development programmes (co-financed by EU countries) that foster innovationand competitiveness to make rural areas attractive places in which to live and work

Common Fisheries policy

The EU’s common fisheries policy aims to ensure that fishing and aquaculture ing fish under controlled conditions) are environmentally, economically and sociallysustainable Its goals are to foster a dynamic and sustainable fishing industry, conserveresources and protect the marine environment while ensuring a fair standard of livingfor fishing communities It contains a set of rules for managing European fishing fleetsand for conserving fish stocks To prevent overfishing, quotas for EU Member Statesset limits on how much of each species can be caught, while a landing obliga-tion avoids the wasteful practice of dumping unwanted fish

(farm-Regional policy

Regional policy underpins European solidarity, boosting economic growth and proving quality of life through strategic investment It dedicates the bulk of its funding

to help the EU’s less-developed countries and regions to catch up and to therefore duce the economic, social and territorial disparities that still exist in the EU.

Improved economic stability and growth

Better integrated and therefore more efficient financial markets

Greater influence in the global economy

A tangible sign of a European identity

1.3 People

From peace and security to global power, the EU gives benefits to improvingpeople’s daily lives European citizens can travel and work freely throughout theEuropean Union, strengthening their ties European institutions offer a platformfor European citizens to voice their opinions and debate policies that affectthem

High food and environmental standards

The food and environment in the EU meet the world’s highest quality standards.Thanks to the member countries’ cooperation, companies or institutions are deterredfrom selling contaminated food or polluting any areas

Human Rights

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The EU aims to protect all minorities and vulnerable groups No one is left behind inthe organisation regardless of nationality, language group, gender, profession, culture,sexuality, or disability Citizens are also protected against unfair treatment in the work-place

Global Power

With the 27 member countries working together, there is much more voice than 27 tions acting separately The EU promotes cooperation and collaboration among Euro-pean countries and provides a shared identity for its member states Hence, Europeanstates also find it much easier to cooperate in an organisation like the EuropeanUnion

na-2 WHAT IS BREXIT?

The food and environment in the EU meet the world’s highest quality standards.Thanks to the member countries’ cooperation, companies or institutions are deterredfrom selling contaminated food or polluting any areas

Brexit is a portmanteau of the phrases British and departure that was formed to allude

to the United Kingdom's vote to leave the European Union in a referendum on June 23,

2016 (EU) Brexit occurred around 11 p.m Greenwich Mean Time, 31 January 2020 The United Kingdom and the European Union signed a preliminary free-trade agree-ment on December 24, 2020, providing unrestricted trade of products without tariffs orquotas However, essential features of the future relationship, like as trade in services,which accounts for 80% of the UK economy, remain unresolved This avoided a no-deal Brexit, which would have been disastrous for the UK economy

On January 1, 2021, the UK parliament accepted a provisional agreement On April

28, 2021, the European Parliament approved it While the Trade and CooperationAgreement (TCA) allows for tariff- and quota-free trade in products, U.K.-EU trade isstill subject to customs procedures This means that trade is not as seamless as it waswhen the UK was a member of the EU

1 Why the UK exit from EU

Economics

The first was straightforward

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The EU's detractors said that it is a dysfunctional economic institution The EU failed

to address the economic issues that have arisen since 2008 For example, southernEurope has 20% unemployment

The disparity between the lifestyles of southern Europeans and Germans (who have4.2% unemployment) is stark Europe as a whole has experienced economic stagna-tion

The alternative of remaining in the EU was economic ruin, according to the argument.Staying in a stagnant organization to tackle British problems, on the other hand, wasmyopic and made little sense to opponents

They felt that Britain would follow Europe's lead if it remained in the European Union.They obviously did not expect Europe to erect trade barriers against Britain Ger-many's third most important export market is the United Kingdom A trade war withBritain is the last thing Germany wants

Similarly, the prospect of London's banks relocating to Frankfurt is logistically sible Clients from all over the world adore visiting London, and in finance, it's allabout the clients

unfea-The existing financial links were not created by the European Union Britain hasplayed a financial role for nearly two centuries The EU is a financial reality-alignedsystem It does not originate

If London's banks relocated to Frankfurt, New York would become a one-of-a-kindmagnet Finally, the Europeans require a financial center in London They will not shut

it down

Sovereignty

The growth of nationalism throughout the world is the second reason for Brexit.There is growing skepticism against international banking, economic, and defensegroups established after World War II The EU, the IMF, and NATO are all strong in-stances of this

Many opponents of the EU argue that these institutions no longer serve a function.Furthermore, these groups steal control away from individual states Brexit seemedlike a fair answer to them because of their distrust and fear of losing control.Such organizations, however, are undeniably valuable to EU supporters They mayneed to be refined, but they should not be abandoned

The European Union's immigration crisis was a catalyst Some EU politicians tended that assisting refugees was a moral obligation However, EU opponents consid-ered immigration as a national issue because it harmed the country's internal life.Avoiding this issue was a major motivator for the "leave" vote.

con-The EU is oblivious to the strength of nationalism It seeks to preserve nationality as acultural privilege However, it deprives individual nations of the ability to make nu-merous decisions

This may have worked prior to 2008, but it is now becoming increasingly difficult toaccept

Political Elitism

Finally, Britain's political leadership suffered a significant setback Both the tive and Labour parties were rejected by "Brexit" voters Both parties had supportedremaining in the EU, but many of their members had come out against it

Conserva-It was ultimately a three-way fight Two established parties wished to remain in the

EU, but a third faction recruited from both parties wished to leave This third segmentperceived both establishment parties as opposed to their interests

This should be viewed in a broader context

Financial markets were terrified by the prospect of Brexit They said it clearly Whatthey didn't realize was how much legitimacy they had lost in 2008

Most "leave" supporters believed that the financial industry's irresponsibility and competence had resulted in a calamity for many Besides, they saw no gain in thegrowth of the financial business even though it wasn't true

in-It is critical to appreciate that Brexit was a vote against the British establishment ers believed that politicians, corporate leaders, and intellectuals had lost their right tomanage the system

Vot-Voters believed the elite despised their ideals, as well as their nationalism and interests

2.2 Results of the 2016 United Kingdom European Union membership

referendum

2.2.1 By regional

The Leave campaign received 51.9% of the vote, or 17.4 million votes, in the June

2016 referendum, while the Remain campaign received 48.1% or 16.1 million votes.The turnout rate was 72.2% The findings were tallied on a national scale, however,

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the overall values mask significant regional differences: Brexit was supported by53.4% of English voters compared to 38% of Scottish votes.

Because England has the largest population in the United Kingdom, its support tiltedthe outcome in favour of Brexit Brexit would have gained fewer than 45% of the vote

if the ballot had been held just in Wales (where Leave voters also won), Scotland, andNorthern Ireland

The outcome defied forecasts and roiled global markets, forcing the British pound tocollapse to its lowest level in 30 years versus the US dollar Former Prime MinisterDavid Cameron, who called the referendum and campaigned for the United Kingdom

to remain in the EU, resigned the next day In July 2016, Theresa May succeeded him

as Conservative Party leader and Prime Minister

Figure 1: Brexit referendum results

2.2.2 By age

It is a fact that the older a voter gets, the harder it is for them to get to the polling place 78% of people over 65 years old voted in the 2015 election, compared with 43%

of 18-24-year-olds and 54% of 25-34-year-olds

Research shows that support for Brexit is quite high for people aged 55 and over compared to those of younger age

Those who campaign for Britain to stay in the EU are also mostly young people, in order to protect the benefits they enjoy as citizens of a large union.

2.3 The consequence of Brexit

Gain:

The UK will have more autonomy in negotiating free trade agreements with non-EU countries, rather than being subject to complicated EU laws and regulations

The UK will no longer have to spend £8.5 billion contributing to the budget of the EU every year

The competition for jobs by British people with immigrants is no longer as fierce as before

Britain will also be seen as a safe haven from financial risks in Europe, which will attract investors and boost the value of the pound

Reduce the rate of terrorism due to the policy of freedom of movement and allowing the immigration of citizens from EU member

Maintain the National cultural identity

Lost:

Britain suffered a loss of up to £100 billion - equivalent to 5% of the gross domestic product (GDP) of the EU's third-largest economy,

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