A few months after the United Kingdom voted to exit the European Union, the immediate effects were a huge drop in the region’s stock market and a great devaluation of the Moeda Britânica (which translate British Sterling Pound) reaching its lowest value since 1985.
Moreover, an expert and a Brazilian businessman Flavio Maluf believes that such an impact can trigger long-lasting effects on the global economy.
For starters, the UK has contributed more than € 11.3 billion to the EU, which according to the British supporting the block output, increased the inflationary pressure on the country. As such, the country’s insulation rest of the block will cause a considerable drop in investment acquired by the country.
Secondly, being a member of EU allows for free trade without barriers of tariffs and quotas on products from other countries. However, with the UK exiting the output block, the country will have to deal with new rates that are likely to harm its foreign trade with the EU.
Thirdly, UK’s EU exit favors Brazil as they will likely be bilateral partners with the country. This is contrary to their previous relationship that only allowed them to trade on the basis of EU standards and the type of products offered, suffering impairments and fees.
Finally, Flavio says the exit of UK is a great loss to the European Union. This is because the country had as much as the Germans, Italians, Portuguese, and the French. Considering that France is showing some fatigue and weaknesses in its economy, it is up for the largest economy; Germany, to sustain the block.
Flavio Maluf was born on December 2nd, 1961. He graduated from Fundação Armando Alvares Penteado (FAAP) at the age of 22 with a Bachelor’s Degree in Mechanical Engineering. After spending a part of life with the Portuguese, he went abroad, studying and working at the University of New York.
He then went to London for further studies earning another degree in Chemical Engineering. He was employed at Eucatex e Grupo (which translate Eucatex and Group) in 1987, holding various positions in the company’s leadership hierarchy. In 1997, he became the CEO and the President of Eucatex, steering the company toward innovation, investment, and launching of new products. As someone who has won many awards, Flavio Maluf is definitely a person to listen to, when he’s talking.