Do you know why Great Britain won't suffer?

[SuperDemocrat]

It has been pointed out that Great Britain will be isolated economically and because they import most of their stuff (I believe) they won't have anything at all. This argument is complete bullshit because those other countries who sell to Great Britain don't want to see their own businesses go under because they can't sell their goods to England anymore. It would be suicide for the rest of the E.U. to stop trading with them so they and the rest of the world will have to live by their decision.

 

[montelatici]

I don't think you quite understand. The UK's problem is different, for example, the Toyota factory in the UK which supplies most Toyotas to the EU will no longer have the tariff free benefits for exporting Toyotas to the EU. Toyota will move that plant to an EU state to maintain the "domestic" production nature of Toyotas in Europe. It is even grimmer with respect to London as a financial center. Foreign banks and investment companies (U.S. included) set themselves up in London to have access to the EU market. These entities will move to an EU state to maintain their access to the EU market. Dublin will benefit and so will Frankfurt and Paris. London will lose.

 

[Challenger]

I don't think you quite understand. The UK's problem is different, for example, the Toyota factory in the UK which supplies most Toyotas to the EU will no longer have the tariff free benefits for exporting Toyotas to the EU. Toyota will move that plant to an EU state to maintain the "domestic" production nature of Toyotas in Europe. It is even grimmer with respect to London as a financial center. Foreign banks and investment companies (U.S. included) set themselves up in London to have access to the EU market. These entities will move to an EU state to maintain their access to the EU market. Dublin will benefit and so will Frankfurt and Paris. London will lose.

You forgot Nissan as well

 

[Toro]

It depends what you mean by "suffer?"

Is the economy going to collapse? No.

Will the economy slow and GDP growth be slower than it otherwise would be over the near term? Yes. That will be true of Europe as a whole.

 

[Lucy Hamilton]

It has been pointed out that Great Britain will be isolated economically and because they import most of their stuff (I believe) they won't have anything at all. This argument is complete bullshit because those other countries who sell to Great Britain don't want to see their own businesses go under because they can't sell their goods to England anymore. It would be suicide for the rest of the E.U. to stop trading with them so they and the rest of the world will have to live by their decision.

There's also huge trade with China and India, which I'm told George Osborne mentioned this morning at some crazy early time when he gave his 20 minute speech or whatever, so the British have that trade in their favour.

 

[bendog]

I don't think you quite understand. The UK's problem is different, for example, the Toyota factory in the UK which supplies most Toyotas to the EU will no longer have the tariff free benefits for exporting Toyotas to the EU. Toyota will move that plant to an EU state to maintain the "domestic" production nature of Toyotas in Europe. It is even grimmer with respect to London as a financial center. Foreign banks and investment companies (U.S. included) set themselves up in London to have access to the EU market. These entities will move to an EU state to maintain their access to the EU market. Dublin will benefit and so will Frankfurt and Paris. London will lose.

London will lose some banking jobs.

And it's not unlike Trade with supporters of Donald Trump. One can argue pro and con as to whether the free flow of capital and trade across borders is a good thing. However, there's no question that without free trade agreements, imports cost more.