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Economics Series: Companies Brace for Impact Ahead of U.K.’s Brexit

2019 will be a very interesting year for Europe and the rest of the world. With a little over six months left before the U.K. is scheduled to exit the European Union (EU) on March 29, 2019, many multinational companies are bracing themselves for what might be a very turbulent ride. An article published in the Wall Street Journal (WSJ), titled, CompaniesStockpile Drugs, Chocolate as They Brace for ‘Hard’ Brexit, outlines some of the concerns that companies from various industries—including financial services, pharma, and manufacturing—share in regards to the Brexit ordeal.In this article, I will examine the conditions that led to Brexit, and what Brexit will mean, from a macro economic standpoint, for those companies who do business in the U.K.
The British people voted in a referendum in June 2016 to leave the EU, after many decades of membership. The EU is an organization that includes 28 member countries who share a single market for goods, services, labor, and capital. Citizens from…

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