Concerns Over Britain Leaving EU and Its Effect on Manufacturing and Exporting

Question

British car manufacturing hit a record high in the first half of 2016 with firms such as Toyota, Nissan and Mini continuing to increase their output. Almost 80% of all of those automobiles were exported to the EU and to other nations outside of Britain. Your client, a well-known Korean car manufacturer, has contacted you for your advice regarding her plan to begin manufacturing vehicles in Britain at the start of next year. You will need to respond to her with:

The compelling reasons for Toyota, Nissan and Mini to have chosen Britain for manufacturing

Consider sources of comparative advantage, protectionism, dynamic gains from trade, regulatory policy, and the movement of the factors of production. The concerns over Britain’s decision to leave the EU and what this could mean for manufacturing and exporting.

Your recommendation for whether or not she should go through with those plans. Your recommendation must be based upon factual evidence and should any include any concerns she should consider if she follows your advice.

Summary

This question belongs to economics and discusses about the concerns over Britain’s decision to leave the EU.

Word count: 1308

 

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