Brexit and the costs of leaving a free trade area.

This is an excellent video from the FT about Brexit. It goes into detail about the costs of leaving a free trade area and how Brexit has impacted small business and investment in the UK. Below are some quotes from the video – useful for the barriers to trade topic.

A French company will buy from Germany because they’ll probably be able to get the same product easier and without any of the extra costs that we’re having to apply to get it out of the UK

We couldn’t ship anything to the EU, nothing. It’s 27 countries, they all have different borders, they all have different rules.

Signing a free trade agreement with New Zealand or Australia has ups and downs of the UK economy, and is probably very, very marginally positive. But it’s nothing like losing a free trade agreement and losing the frictionless trade you had with your biggest trading partner that’s only 20 miles away across the channel.

We lose 4 per cent of our GDP by Brexit. We gain 0.08 per cent by the government’s own estimate through this trade deal with Australia.

The topic Barriers to Trade on elearneconomics has fully integrated flash (cue) cards linked back to the key notes that assist students to understand economic vocabulary, improve their skills, develop knowledge and build their confidence.