A referendum on opting out of or remaining in the EU to British citizens will be called. What are the economic advantages and disadvantages of the UK remaining in the EU?

A referendum on opting out of or remaining in the EU to British citizens will be called. What are the economic advantages and disadvantages of the UK remaining in the EU?

English Assignment 3
Tutor: Joanne Callagham
Tutor Group: Mathematics and Economics (2)
Word Count: 1,592
Date: April 6, 2014

Contents Page
Cover Page……………………………………………………………………..………….1
Contents………………………………………………………………………….…..........2
Essay…………………………………………………………………................................3
References………………………..……………………..………………....………………6
Appendix………………..……………………..………………....………………………12

Britain has long had ambivalent feelings towards its EU membership. Soon, a referendum on opting out of or remaining in the EU to British citizens will be called. Renowned business leaders1 have started to sound the alarm, warning that a departure from the EU will pose a serious threat to the volatile UK economy. However, there are growing speculations over the merit of these warnings and the extent to which how detrimental what some dub a “Brexit” would be for the UK economy. The economic implications of a possible UK withdrawal vary across different sectors, having added impact on agriculture, investments and trade.

Membership in the EU plays a pertinent role in unlocking global and European direct investments in the UK and creating new avenues for potential investments. Since 1992 and the creation of the Single Market2, Foreign Direct Investment (FDI) flows to the EU from around the world have doubled3, poising the UK as an attractive global destination for investment with the second largest stock of FDI in the world. Pain and Young (2004) discovered that a decline in investments, which are used to aid starting up of factories, building office spaces, stimulating research and development, and supporting innovation in creative industries, in UK businesses would have the largest impact on the economy. Prominent businesses, such as car manufacturer

References: Amadeo, K. (n.d.) What is GDP? Retrieved March 15, 2014, from http://useconomy.about.com/od/grossdomesticproduct/p/GDP.htm Bennett, A Bennett, A. (2014). Richard Branson Warns Nigel Farage That EU Exit Would Do 'Enormous Damage '. Huffington Post. Retrieved April 1, 2014, from http://www.huffingtonpost.co.uk/2014/03/26/richard-branson-eu-ukip-uk_n_5034514.html Blackden, R British Broadcasting Corporation. (BBC). (2013, 14 May). UK and the EU: Better off out or in? Retrieved April 4, 2014, from http://www.bbc.co.uk/news/uk-politics-20448450 British Broadcasting Corporation EU budget: how much does each country pay and where does it get spent? (2012). The Guardian. Retrieved March 22, 2014, from http://www.theguardian.com/news/datablog/2012/nov/22/eu-budget-spending-contributions-european-union#data Euroscepticism EU Membership and FDI. (n.d.) Retrieved March 28, 2014, https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/220966/foi_eumembership_fdi.pdf (pg12) Financial Times Foy, H. (2013). Nissan warns it would reconsider investments if UK exits EU. Financial Times. Retrieved March 30, 2014, from http://www.ft.com/cms/s/0/a620725c-485b-11e3-a3ef-00144feabdc0.html#axzz2xxe69juc Internal Market Jain, A. (2014). Unilever may review British investment if country leaves EU. Reuters. Retrieved March 28, 2014, from http://uk.reuters.com/article/2014/01/22/uk-unilever-britain-idUKBREA0L04N20140122 Jowit, J Milne, I. (2011). The Single Market and British Withdrawal. The Bruges Group. Retrieved April 1, 2014, from https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/278491/Bruges_Group_SingleMarketAndWithdrawal.pdf Morris, N Woodcock, A. (2014). UK could lose more than it gains with exit. Retrieved April 1, 2014, from http://au.news.yahoo.com/world/a/22345283/uk-could-lose-more-than-it-gains-with-exit/ Appendix