The recent UK referendum to leave the EU, or Brexit, as it is frequently known, represents shifting tides in many geopolitical arenas. This series is devoted to looking at the many possibilities that this could represent to the Middle East, in particular, and what it means for the stabilization of countries in that region.
Isolationist policies decrease foreign investment
The global economy is dependent upon trade deals set up by different entities. This is what allows countries to share in commerce, and has given to the rise of economic globalism. When the UK voted to exit the EU, it lost its right to any trade deals that Europe has created as a singular purchasing power (the EU was the largest entity in the world, when measured by purchasing power parity). However, due to the increasingly nationalistic tendencies of part of the population, it is likely that further actions will play into the same isolationist mentality. Since movement of commerce is often associated with movement of labor (or people), as it is in the rest of Europe (the Schengen Zone), this may hamper the ability for the UK and many Gulf countries in the Middle East, which are heavily entangled, financially, to benefit from trade agreements.Read More
Posted By Treasury Vault