If we vote for Brexit what happens

CLAPTON

ruggedtoast wrote: »

The pound plunges again. Theresa May as flat footed as ever as her government says they don't care what effect hard Brexit has as long as Tory xenophobes can be hateful to foreigners.

Meanwhile Brexitards wave their pitchforks and light their torches while the world shakes it's head at Britain's abject idiocy.

good to see labour supporting the more right wing tories

gfplux

Conrad I thought you would be interested in this article about the Globalisation of the car industry.
You have posted about BMW and others having problems selling to the UK. This article explains that we will need a special deal within our deal so cars made in the UK can be easily exported.

I quote from the article.

"Many British carmakers, for example, rely on parts imported from other EU countries. That is red-tape-free at the moment, because of EU easy access rules, but will become much more troublesome when new rules have to be negotiated and implemented, said Arndt Ellinghorst, an analyst with Evercore ISI in London.
"It's not simple at all," he said. "The second you use a component from the EU in a U.K. car, you need a new trade agreement for that car when it leaves the country. So it's very complicated."

Here is the link to the article
http://www.timescolonist.com/uk-s-globalized-car-industry-wary-of-brexit-impact-1.2353086

I am not suggesting for one minute we will not be able to export our cars but we need our negotiators on the ball with this don't you think?

Thrugelmir

ruggedtoast wrote: »

The pound plunges again. Theresa May as flat footed as ever as her government says they don't care what effect hard Brexit has as long as Tory xenophobes can be hateful to foreigners.

Meanwhile Brexitards wave their pitchforks and light their torches while the world shakes it's head at Britain's abject idiocy.

The pound rose today after Mrs May spoke.

Thrugelmir

gfplux wrote: »

You have posted about BMW and others having problems selling to the UK. This article explains that we will need a special deal within our deal so cars made in the UK can be easily exported.

Given that BMW manufactures the x series in the USA. Life could be made equally as awkward. There's two sides to the discussion. Be plenty of lobbying from those with vested interests.

gfplux

Thrugelmir wrote: »

Given that BMW manufactures the x series in the USA. Life could be made equally as awkward. There's two sides to the discussion. Be plenty of lobbying from those with vested interests.

Quite right (in fact I drive one)
I was pointing out that we have to make sure the deal is an equal one for us and our negotiators do a good job.

gfplux

If you are making a (great) omelette you have to break eggs.

https://www.theguardian.com/politics/2016/oct/12/brexit-mps-david-davis-eu-exit-plan

Chris Philp, a Tory backbencher, urged the Brexit secretary to reveal more details, saying there was a “danger some [businesses] may take decisions in the next two or three months” to pre-emptively scale back investment and move jobs. And the serial rebel Anna Soubry, a former business minister who attended cabinet, demanded a yes or no answer as to whether the UK would be in the single market.

gfplux

If you are making a (great) omelette you have to break eggs.

https://www.theguardian.com/business/2016/oct/12/tesco-running-low-key-unilever-brands-price-row-supplier-supermarket-falling-pound
It is understood that Unilever has halted deliveries to Tesco after a dispute over price. The food, toiletries and household goods supplier has been attempting to raise prices across a wide range of goods by about 10%, blaming the falling value of the pound against the euro and the dollar.

CLAPTON

gfplux wrote: »

Quite right (in fact I drive one)
I was pointing out that we have to make sure the deal is an equal one for us and our negotiators do a good job.

trade has to be mutually beneficial : being 'equal ' is meaningless.

gfplux

If you are making a (great) omelette you have to break eggs.

https://www.theguardian.com/business/2016/oct/12/british-shoppers-told-to-expect-price-rises-after-steep-fall-in-pound
British shoppers should brace themselves for higher prices following the steep fall in the pound since the Brexit vote, the former boss of Sainsbury’s has said.

Justin King said supermarkets would be unable to absorb the recent rise in the cost of importing goods caused by the falling value of the pound against the dollar and euro. Instead, said King, they would soon pass on the costs to consumers in higher prices.

CLAPTON

gfplux wrote: »

If you are making a (great) omelette you have to break eggs.

https://www.theguardian.com/business/2016/oct/12/british-shoppers-told-to-expect-price-rises-after-steep-fall-in-pound
British shoppers should brace themselves for higher prices following the steep fall in the pound since the Brexit vote, the former boss of Sainsbury’s has said.

Justin King said supermarkets would be unable to absorb the recent rise in the cost of importing goods caused by the falling value of the pound against the dollar and euro. Instead, said King, they would soon pass on the costs to consumers in higher prices.

obviously so, if costs rise then product prices need to, unless component substitution can mitigate the consequences

large trade deficits are bound to lead to lower exchange rates in the medium term : the inevtiable correction will benefit the Uk in the medium term even if there is short term pain.