I know that you are not taking Macro but Micro. However, as your economics instr

Question

I know that you are not taking Macro but Micro. However, as your economics instructor I would like (some times) to bring up international economic issues that (may) affect us in USA. Here is what I found and I want all of you try answering the question at the end of the "here we go". By the way, this topic connects to the international trade you already got exposed to in one of the previous chapters. Here we go: The government of England has decided to leave the European Union. The political consequence is that the prime minister resigned. The economic consequence is that the county currency (money) went down. Question: Should we care (here in the USA)? If yes, why? If not, why not? Be practical. Use some examples. i got this question and i didn't know how to answer it

Explanation / Answer

yes, because UK is one of our prime nation which we import many goods from the nation and also we are exporting so many. in the area of international trade, for us, it is going to be give more advantage. dollar is going to gian more weight in the market and many nations will looks for dollars for their international trade.

the first impact of Brexit is on US stock markets, we know the Dow Jones industrial average tumbled 611 points, or 3.4%, to close at 17,400. the Standard & Poor's 500 fell 3.6%, the losses dropped both stock measures back into negative territory for 2016. the Nasdaq composite, which already had been in the red for the year, fell 4.1%.

now investors looks the safe investments rather than stocks and bonds; they may go with safe investments like Gold and bank deposits.

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