Question

Which of the following would most negatively affect the export economy of the United Kingdom? A. The cost of a gallon of gasoline quickly decreases. B. The price of a barrel of oil quickly increases. C. A mine produces less and less iron ore. D. A deadly disease spreads among livestock.

Answer 1

When the UK leaves, it may not be able to negotiate replacement free trade deals with all 27 countries. This could lead to trade diversion and a negative impact on the UK export industry. However, if the UK leaves, it may be able to lower EU external tariffs. Trade would be hit when the UK formally exits the EU.