Economist describes ripple effect of Brexit
“Brexit will have serious repercussions for the UK and the European Union, but I hope it will be a case study in what not to do in an integrated economy,” Michael Frenkel, of the WHU - Otto Beisheim School of Management, said at CMU-Q's dean's lecture. “We know that in economic terms, trade is a win-win, and the elimination of trade is a lose-lose.”
Britain does not have a separate trade agreement, so when it leaves the EU it will lose the current trade protections of EU membership. The country's trade regulations will default to those of the World Trade Organization and result in higher tariffs and negative effects on trade worldwide, Frenkel said.
“Brexit is a complex issue that will have implications far beyond the borders of the UK and the European Union," CMU-Q Dean and CEO Ilker Baybars said. "Professor Frenkel’s insights will be helpful to our students and faculty as this unprecedented event in the history of international trade unfolds in the coming months and years.”