The world was recently shocked when Britons voted to cut ties with the European Union. The June referendum was followed by an immediate drop in the value of stocks in major European money markets. There was also a massive drop in the value of the British pound, which recorded its lowest value in nearly thirty years. Experts are predicting that the referendum vote could have a long-lasting impact of global money markets. Brazilian businessman Flavio Maluf is the latest expert to weigh in on the Brexit vote.
On the impacts of the vote to the British economy, Maluf argues that there will be a considerable drop in the amount of investment that Britain will receive from former EU partners. In addition, there will be suppressed movement of trade goods and people between EU member countries. This will have an immediate effect of Britain’s economy. Mr. Maluf also points out that the country’s trade volume with the EU will drop significantly because extra quotas and new tariffs are likely to come into play. The country may thus be forced to enter into consensual agreements that were previously unheard of.
Where Brazil Stands
Maluf asserts that Brazil needs to realign its foreign trade policies so that it can reap maximally from Britain’s exit from the EU. The South American country has a good opportunity to form bilateral agreements with the UK on a one on one basis. Previously, the formation of such agreements was not possible due to restrictions imposed by the EU on member countries. Such agreements will help revitalize the economies of both countries.
Flavio is one of the most outspoken Brazilian entrepreneurs. He comes from a prominent family in the country. Flavio attended Armando Alvares Penteado Foundation (FAAP) from where he graduated with a bachelor’s degree in mechanical engineering. He worked in the United States before returning home to run the family business. He currently serves as the chief executive officer of GrandFood and Eucatex. His astute leadership has contributed to the firms’ impressive growth. He has also built extensive partnerships within the Brazilian economy. These have enabled his businesses to gain dominance. There’s a reason Flavio keeps winning awards.