The European Union was made after the World War Two to stimulate or promote the economic cooperation with an idea that countries which will trade with one another would most likely avoid going to war with each other.

This collaboration formed a single market which allowed goods and services, even people to move around freely. It seems like the members of the EU works as one state in order to avoid clashes and produce business among the countries which are members. The European Council even has its own currency which is also used in other nineteen countries who are members in EU and has its own parliament which governs in a wide range of area including environment, transport, consumer rights and other sectors as well.

The referendum to exit EU was held on 26 June, 2016.The term BREXIT actually refers Britain leaving EU and the total turnout was 71.8% from which 51.9% voted to leave EU against the remaining 48.1% (BBC, 2016).

However, one of the challenges both countries will face is on trade. As EU is a single market and UK is a member, so there are no taxation forced on imports and exports for the UK till now but after leaving EU, one of the complication that UK will face is the trade taxation. EU is the biggest business partner of UK, so the benefits they both have from one another through trade deals will be jeopardize. UK will also face the challenge which includes the negotiating power with the rest of the members of EU. Hence, the supporters to leave EU says that these advantages will be compensated through the establishment of UK own trading agreements. Furthermore, some of the options proposed by the campaigners stated that as UK is leaving the political aspects of the EU so it would not be bound by the EU laws on justice, agriculture and home affairs but yet could be the member of the single market.

Adding on, the economic effects of leaving the EU for UK are discussed in facts and moulded in paragraphs for better understanding.
Currently, the advantage lies within UK as it has a free trade system with all the 28 countries who are EU members. The percentage of trading accounted with the EU was 44.6% of the UK exports and similarly 53.2% of the UK imports of goods and services. If UK leaves EU it will result in 1.3% fall in average UK income and through a pessimistic approach with increase in trading cost, Brexit will lower incomes by 2.6% (Swati, 2016). If UK will leave the EU then it will also loose the negotiation on trade deals with these countries which could result in effec