Essays on Economics for Professionals Assignment

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The paper 'Economics for Professionals' is a great example of a Macro and Microeconomics Assignment. “ Hard Brexit fears” are based on the approach that the UK takes after it formally exits the European Union. The manner in which the UK treats the EU after the formal exit may be soft or hard, depending on the approach that the country takes in relation to immigration and customs issues (Allen 2016). The hard option is defined by the following things. The first one is that the UK will have to exit the EU single market.

Secondly, under the hard Brexit approach, the UK will have full control over its borders and implement strict immigration controls. Thirdly, the UK will have to give up access to the EU customs union if it settles for the hard Brexit approach. “ Hard Brexit fears” are concerns that experts have raised regarding the consequences of the UK settling for a hard Brexit. In the first place, experts have warned that if the UK goes for a hard Brexit, it should be prepared for a period of political and economic uncertainty (Roberts 2017).

The uncertainty will arise from the fact that it will take a long time (years) for the hard Brexit option to be formalized (Sims 2017). Another issue of concern arises from the manner in which the UK will relate to the EU countries. After the hard Brexit, the UK will have to make fresh negotiations with the EU, which will remain a trading block whereas the UK will be a single country. It is widely feared that in the absence of trading deals, the economic growth prospects of the UK may remain low (Roberts 2017).

Low economic prospects may be fuelled by a fall in the value of the sterling pound in relation to the US dollar as well as the euro. The essence of the demand and supply model of the exchange rate is that the demand and supply of the currency of any country are determined by the interaction of the demand and supply of the currency on the foreign exchange market. In relation to the question, the exchange rate of the AUD is determined by the interaction of the demand and supply of the AUD on the foreign exchange market.

In general, the law of demand states that if other factors remain constant, if the price of a commodity is high, the demand for the commodity decreases (Sivagnanam & Srinivasan 2010, p. 40). On the other hand, if the price of a commodity falls, the demand for the commodity increases.

References

Allen, K 2016, ‘Pound continues to fall against dollar amid hard Brexit fears,’ The Guardian, 11 October 2016.

Chamber of Commerce and Industry Queensland (CCIQ) 2011, “Impact of the high Australian dollar on Queensland businesses,” viewed 24 February 2017, .

Marthinsen, JE 2008, Managing in a global economy: demystifying international macroeconomics, Cengage Learning, Mason.

Pilbeam, K 2010, Finance and financial markets, Palgrave Macmillan, London.

RBA 2017, Historical data, viewed 23 February 2017, .

Roberts, D 2017, ‘UK risks disorderly crash landing on Brexit, business leaders warn,’ The Guardian, 16 January, viewed 22 February 2017, .

Sims, A 2017, ‘What is the difference between hard and soft Brexit? Everything you need to know,’ Independent, 3 October, viewed 22 February 2017, .

Sivagnanam, KJ & Srinivasan, R 2010, Business Economics, Tata-McGraw Hill Education, New Delhi.

Taylor, A 2017, ‘Which factor do you think affects the Aussie dollar the most?’ The Bull.com, 24 February, viewed 22 February 2017, .

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