policiesBrexitBrexit: British decision to leave the European Union based on the outcome of the referendumheld in June 2016-Marks the inflection point of the globalization process that has been taking place for thelast 60 years-Global and regional economic integration dealt a major setback-Brexit to weaken the UK and EU both economically and politically-London’s position as the dominant center of European finance may deteriorate if the USloses unrestricted access to Europe’s single market-May even trigger slow disintegration of the UK as a political entity-May threaten EU if other member countries are tempted ot also exit-Brexit may have happened because globalization succeeded-Majority of voters outside of London felt alienated from the globalized economyand were worried about competition for jobs form the immigrants-Key agreements between EU and UK, which was REJECTED by Parliament-A customs union between the UK and the EU until an alternative long-termrelationship can be established-UK cannot negotiate free trade agreements with other countries orregions in the near future, sharply restricting the sovereignty of the UK-An end to free movement of ppl-Help UK regain control of its border and protect its national identity-No hard border between northern ireland and the republic of ireland-May induce Northern Ireland to tilt toward the Republic of Ireland (amember of the EU), raising political instability in Northern Ireland (akaowned by the UK)
-Logjam in Parliament reflects the difficulty of fully regaining the political sovereigntywithout sacrificing gains from economic integration-Brexit stems from the resentment of the majority against the urban elites who are seenas disproportionately benefiting from globalization and the fear of losing the Britishnational identity-Not an isolated phenomenon: Hungary, Poland, Italy, Brazil, and the US (similarnationalism has been gaining circulation)-Trade war between US and its major trading partners, esp China, postTrump has cast shadows on global economic growth and threatens thegains from global economic integration-Brexit revealed some of the serious difficulties associated with free trade and globalintegration that espouse free movements of goods, services, capital, and ppl acrosscountries-International trade contributes a great deal to economic growth, but alsoproduces clear winners and losers-Unless losers are compensated by transfer payment and retraining forgood jobs, free trade is likely to encounter political resistance-Important for countries to prompt and pursue shared growth to continue tobenefit from free trade and economic integration and fend offprotectionismMultinational CorporationsMultinational Corporation (MNC): Refers to a firm that has business activities and interests inmultiple countries-Foreign direct investment byMNCsis a major force driving globalization of the worldeconomy (like international trade)-Suggests a firm obtaining raw materials from one national market and financial capitalform another, producing goods with labor and capital equipment in a third country, andselling finished product in yet other national markets-Global operations force the treasurer’s office to establish international bankingrelationships, place short-term funds in several currency denominations, and effectivelymanage foreign exchange risk
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