Mergers

The announcement made by the UK to exit the European Union was not without consequences. The most evident were the sharp drop in the value of stock across Europe and devaluation of the Sterling Pound. The value of the Sterling Pound was the lowest it has ever been since 1985. According to Flavio Maluf, some of the effects of the exit would have a lasting effect on the global economy. Examples are:

1. Consequences on the British Economy
It is speculated that the exit of the UK from the EU will lead to a decrease in investments in the country. It is also speculated that the restriction of movement of goods and people between the UK and European member states is bound to lead to negative results.

2. Impact on foreign trade of the United Kingdom and Europe
Foreign trade is bound to be affected both negatively and positively by UK’s exit. Flavio Maluf says on his WordPress blog, that the exit will lead to the UK being charged different tariffs that may harm foreign trade. While on the other hand, according to Otto Nogami, the exit will allow the UK get into bilateral agreements that might prove beneficial.

3. Consequences on imports and Brazilian exports
Brazil is bound to benefit from UK’s exit. It will have the opportunity to trade with the UK without suffering from rates and impediments that were previously set according to EU standards.

4. Impacts of the European Union
Uk’s exit will negatively impact the EU since it was one of the core countries of the block and most of EU’s structure is set in the core countries. Presently, France shows signs of fatigue and weakness, and thus it will be up to Germany to sustain the block in economic terms.

Flavio Maluf was born on December 2, 1961, according to BlogdoRonco. He is an entrepreneur and engineer trained at the Armando Alvares Penteado Foundation. Flavio Maluf currently serves as president of Eucatex and Grand Food group. Eucatex is a company that manufactures and sells ceiling lining and insulating material from eucalyptus fiber. It currently is the second largest producer of fiber panels made of wood in the world market.  Make sure to check out Flavio on Twitter @Flavio_Maluf, and his LinkedIn profile has his complete resume.