Brexit Effect on Global Economy-2016

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Not only it will have positive Impact on India,it will also have negative impact such as India has been Negotiating a free trade agreement with European Union since 2007 abd Britain leaving European Union will mean that India will need to negotiate a seperate pact with the United Kingdom. Brexit can affect Indian IT sector as well as there will be considerable hike in price of imports,food and other everyday goods.Not only this but it won't be a good sign for the nation like India that setup business in United Kingdom owing to the fact that there is a single market with easy flow of goods and product to major Nation.

Not only Brexit impact will be on India or Britain but it's impact will be on super power as well such as the European Union is one of the world's largest trading blocs and it's major trade partner with China and United States.After falling apart it could lead to alot of Global uncertainty and many trade deals would need to be restructed.Plus the high expectation of recission in the United Kingdom may give other countries pause,especially they see an economic storm that Bretain may endure after Brexit.A strong dollar sounds good and it is for American travellor but it is bad for United States business that sell product overseas.A strong dollar makes company's product more expensive and less attractive to buyer outside the United States.In short,a stronger dollar typically lower United States export.

Brexit impact on China will be that it will undermines China's economic relationship with the European Union at the precise moment that the Chinese economy is slowing and in search of Global partners.On Russia the impact of Brexit will be that their largest companies will leave London Stock Exchange as well as their oil prices will fall.

NAME : ARPIT MISHRA

CLASS : M.COM

SECTION : A