What could be the positive effects of Britain leaving the European Union i Living standards of Briti...........

English language (insurance) Reading comprehension (P)

Directions : Read the following passage and answer the given questions according to the passage:

Brexit is an abbreviation of "British exit" which is used to explain a possibility of UK coming out of EU. It is a word that used as a shorthand way of saying the UK leaving the EU - merging the words Britain and exit to get Brexit. So basically, It's the issue of whether Britain should exit the European Union or not — a question that will be decided in a historic referendum on June 23.

A referendum is basically a legal mechanism for voters in which everyone (or nearly everyone) of voting age can take part, normally giving a “Yes” or “No” answer to a question. Whichever side gets more than half of all votes cast is considered to have won. So we can say that here in the case of Brexit the referendum which is going to happen on 23rd of June will be the decision maker for the future of Britain. Britain could have a new prime minister by early September as David Cameron started laying the groundwork for his successor to trigger the country’s exit from the European Union. The government is under pressure to fill a vacuum left when Cameron announced he would resign by October after Britain ignored his advice and voted to leave the 28-member bloc in last week’s referendum. Presently EU is a block of 28 countries and 19 countries have formed EURO ZONE. We can say that the European Union is an economic and political union of 28 countries where each of the countries within the Union is independent but they agree to trade under the agreements made between the nations. If the global financial markets are affected by the Brexit, Indian markets are unlikely to be insulated. Indian companies will have to address two markets separately adding to costs.

Indian companies having the base in Britain will have a smaller domestic market, rest of EU will become an unprotected export market. The Money will move out of Britain and will affect currencies including INR (Euro will weaken and Dollar will strengthen) and in turn, affect the global economy.

What could be the positive effects of Britain leaving the European Union?

(i) Living standards of British would fall, inflation would rise in the UK and British economy might be plunging in to recession by 2017.

(ii) It will boost the voices raised for exit from EU in other countries like France, Germany, the Netherlands and Denmark.

(iii) In the past couple of years a lot of migrants have been coming from Asia and Africa to Europe, which has increased the stress on public services and cultural incompatibility since free movement is a key idea of the EU. Now, they have full control on its borders.

(iv) Britain’s membership in the EU bound it to many rules of business and charged billions of pounds as annual membership fee. Now, they don’t have any such type of restrictions and bound.

All of the above

All except (ii)

Only (ii), (iii) and (iv)

All except (i) and (ii)

None of thes

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Explanation:

(i) is the negative effect which British may have to face. (ii) is vague with respect to the passage since it doesn’t have any relation with Britain. (iii) and (iv) are the positive effects from British point of view since it provides freedom and full control to regulate their business and they don’t have any restrictions from now onwards.