In June 23, 2016, the UK existed from the EU after the successful referendum. Across Europe, the stock markets were largely affected. The departure led to devaluation of the pound sterling, recording the biggest crash since 1985. Flavio Maluf, a Brazilian businessman, takes a look at the effects of the departure.
He first looked at the impact on the British economy. Flavio states that the UK was a major contributor to the success of the European Union. Flavio explained that the now restricted movement of goods and people between the EU countries would also have an adverse effect on the economy. Looking at the foreign trade of the United Kingdom and Europe, there will be new rates on tariffs and extra quotas on incoming products. This situation will harm foreign trade. However, Flavio Maluf looks at it positively. He points out on the possibility of the country entering into bilateral agreements that were previously not practical.
The successful businessman also analyzed the effect of the departure on the Brazilian imports and exports. Initially, the Brazilian market experienced impairments. The Brazilian market will benefit from the exit of the UK from the EU by being able to make bilateral agreements with the UK. Previously, the two nations traded based on the EU standards. However, since the UK is not Brazil’s major trading partner, these benefits will be limited.
In addition, Flavio Maluf looked at the effects on the UK’s exit on the EU. Since the EU was well established in major countries like the UK, France and Germany, it stands to have a weak economy. Currently, France’s economy is unstable. German remains as the only hope for the EU. Being successful and experienced in entrepreneurship, Flavio’s contribution to the world of business is highly valued.
Flavio Maluf is a Brazilian businessman. He is a qualified mechanical engineer who graduated from the Armando Alvares Penteado Foundation (FAAP). Flavio is the eldest son of Paulo Maluf, a politician and the owner of Eucatex and Grand Food. Eucatex is a Brazilian company that manufactures products using eucalyptus as raw material. Some of the products manufactured by the company are ceiling tiles, panels and soft boards. Read more of his opinions on the business world on his official blog.