Immediately after the Brexit vote in June 2016, the stock markets were the first to suffer. The stock markets fell by over 12% across Europe. The sterling pound underwent a major devaluation and reached its lowest ever value from 1985. According to Flavio Maluf, financial experts are concerned that Brexit will bring about lasting impacts on the international economy.
1. Effects on the British Economy
In 2014, UK contributed more to the union by spending € 11.3 billion against the € 6.9 billion it received. This fuelled the desire to exit as UK’s continued existence in the EU increased the country’s inflationary pressure. Flavio Maluf agrees with Paulo Figueiredo, FN Capital’s director of operations who stated that the isolation would occasion a notable drop in the investments received by the UK. The expected halt to the free movement of people and goods will bear negative results on segs.com.br.
2. Effect on the International Trade in Europe and UK
European Union members trade freely with other member countries. Following the exit, UK will have to deal with new rates not present before; a move that Maluf believes will affect the country’s foreign trade with the European Union. However, Otto Nogami, a specialist on linkedin.com, believes that the exit will benefit Britain as it can sign bilateral agreements unlike in the past.
3. Consequences on Brazilian Exports and Imports
The UK exit will favor Brazil, as it will be able to sign bilateral agreements that will not be negotiated on EU standards’ basis.
4. Impact on the EU
Britain’s exit from the EU at http://maringa.odiario.com/economia/2016/12/conheca-com-flavio-maluf-algumas-dicas-para-nao-perder-a-produtividade-no-trabalho/2299424/ will mean a great loss to the union as many of its structures are established in countries like the UK, France and Germany.
Eucatex focuses on producing and marketing of insulation and linings from wood fibers and eucalyptus. It began its operations in 1954 in the area of Salto. It has seen its business evolve rapidly and presently, it supplies large constructions, furniture manufacturers, packaging, automobile and toy industries.
About Flavio Maluf
Maluf has been the CEO of Eucatex from April 29, 2005. He is the chairman of the board of executive officers at Eucatex. He previously worked for Citibank N.A., New York and Sistema S.A. He holds a bachelors degree in Mechanical Engineering from FAAP (Fundação Armando Álvares Penteado).