The Economic Impacts of England’s Departure from the European Union

The European Union authorities announced in 2016 that the United Kingdom is no longer part of them. After UK’s departure, stock prices fell by over 12 percent. Furthermore, the value of the pound sterling decreased significantly. This devaluation impact is the first one since 1985. According to Flavio Maluf, consequences associated with the departure affect four entities. These include:

 

  1. The British Economy

 

The UK contributed over €11 billion to the EU as of 2014. Consequently, the British economy received €6 billion from the transaction. After the UK left the union, the British economy is likely to record a great downfall. Flavio Maluf believes that the number of investments in the country is also going to decrease.

 

  1. Foreign Trade Between the UK and Europe

 

One benefit of belonging to the European Union is that no tax is deducted from cross-country trades. UK’s departure is likely to introduce new rates for such trades. These rates could harm UK’s foreign trade. On the brighter side, the United Kingdom can sign new bilateral agreements for its trading activities.

 

  1. Brazilian Imports and Exports

 

Brazil will be among the nations that would seize the opportunity created by UK’s departure from the EU. The country has the chance to sign new bilateral agreements. This is because the EU regulated the previous agreements.

 

  1. The European Union

 

The EU relied on strongholds such as the UK, France, and Germany for dominance in the global marketplace. After the United Kingdom pulled out, the European Union remains with only two strongholds. Apparently, France has started showing signs of economic weakness. The union’s only hope is Germany.

 

About Flavio Maluf

 

Flavio Maluf is one of the most successful Brazilian business executives. He runs Eucatex S.A Industria e Comerçio as CEO. He has been part of Eucatex’s executive team since 2005. The company is known for its manufacturing processes that convert raw materials extracted from trees into quality construction materials.

 

Maluf earned his mechanical engineering degree from FAAP. He later proceeded to the New York University for an academic specialization program in foreign trade. Besides Eucatex, he has worked for Citibank N.A and Sistema S.A.

 

Flávio Maluf: Offering Insight into Market Activities

When Britain voted overwhelmingly to end their long association with the European Union in the June 2016 referendum, it set in motion events whose ripple effects will be felt for many years and in countries beyond Europe. Flávio Maluf, a Brazilian mechanical engineer and entrepreneur, believes the Brexit offers Brazil a unique opportunity to sign bilateral trade agreements with Britain with better terms than the current one they have with the EU as a trading block. However, holds that such deals will come a significantly smaller market. While arguing that the added economic autonomy will allow Britain to sign better bilateral trade deals, Flávio Maluf warns that Brexit will isolate the United Kingdom as many foreign investors and economies will shy away from doing business with the UK due to differential tariff rates and immigration policies. EU countries will also an important trading bloc due to these new rules, which have led to market uncertainties.

 

 

On Mergers and Acquisitions

 

 

Flávio Maluf’sdeep insight into market operation stems from his own experience as an entrepreneur and academic qualification as a mechanical engineer. Since founding Eucatex Group in 1951, Flávio Maluf has expanded its operations with a sustainable edge. The company has expanded its operations beyond the civil construction industry into furniture making industry where it specializes in supplying technology-produced materials. The trees are obtained from the company’s forests in São Paulo, Brazil.

 

 

Maluf believes that the merger between Pfizer and Allergan will increase the two companies’ market base while also increasing profit margins through reduced taxes. Such benefits will also be enjoyed by Newell Rubbermaid following its purchase of Jarden Corporation and the merger between DuPont and Dow Chemical.

 

 

On Movies and Technology Use in Schools

 

 

Flávio Maluf has a versatile grasp on various issues that extends beyond his experience and education. He has offered very insightful reviews on various movies and documentaries including The Wall Street Wolf. His critical reviews have drawn important comparisons and established connections with real life issues including the 2008 financial crisis. He believes that technology has the potential of facilitating content delivery during learning process as it allows for easy access to information. Moreover, it breaks the traditional classroom content delivery, thereby making the learning more interesting and enjoyable.