        In the news recently has been the decision by the United Kingdom to end ties with the European Union, which has been dubbed ‘Brexit.’ And I wanted to know how it would affect us here in Canada.
               Many were stunned by the results which saw over half of the United Kingdom’s population voting to leave the European Union. Results which caused strife between the countries that make up the United Kingdom including Ireland and Scotland.
               The vote was ultimately one that looks at globalization and what’s happening in the world. For Britain, they’ve had many issues surrounding new people to their countries and want to pull back into themselves.
               So what does this mean? Well in markets took a hit in Britain, but many feel as though Britain pays a lot into the EU and by backing out they’ll be better off and no longer tied to troubled EU economies. However, some say that Britain will be worse off without the European Union; however, we’ll only really know once they sort out how to become independent again and as the world continues on with this change.
               What does this change mean for the world, because globalization means that we’re affected by essentially anything going on in the world? Â鶹ÊÓƵ of our border Donald Trump commended them on taking back their country and drew parallels to the United States.
               In Canada, however, The Huffington Post researched five ways that the ‘Brexit’ will affect Canadians.
1.      Financial analysts are worried about a financial crisis like we had in 2008, when markets dropped. Markets are expected to potentially overreact before levelling out.
2.      The Bank of England is speculated to potentially cut interest rates, while the United States is set to increase rates this fall… which apparently means Canadian rates will remain low.
3.      Globally things look quite dull and Britain’s exit may spur other countries to leave the European Union. Britain may have started a trend towards unravelling the EU, which would factor into Canadian economies in the future.
4.      Canadian business in the United Kingdom apparently accounts for only 2.5 percent of Canadian trade, so it isn’t expected to have a huge affect on Canadian business.
5.      As for the loonie, our Canadian dollar, is expected to soften in coming months when compared to the American dollar because of the global uncertainty moving forward. However, it’s expected that a weaker pound and even discounts in Europe will make it the place to vacation according to The Huffington Post’s article.
               Right now Canada will remain rather unaffected by ‘Brexit,’ but it will remain a concern as the fallout of the event is sorted out in following years.
