Do you agree that the expansion of global trade has made states interdependent, jeopardizing their sovereignty? Discuss this in the context of the economic effect of BREXIT on international trade.

The relevance of the topic of the presented essay is evident. As we already know, the Labor Organization defines globalization as a process of growing interdependence among all people on this planet. In their view, people are linked to each other economically and socially by trade, investment, and governance. These links are supported by market liberalization and information, communication, and transport technologies. In this essay, we will define globalization as the expansion and strengthening of international political and economic relations as we consider the political effects of globalization. It is known that economic and political independence and interdependence are interconnected. Let us discuss this in the context of the economic effect of BREXIT on international trade. Brexit will undoubtedly have an economic impact on the UK and the EU, especially trade. The UK's separation from its largest trading partner will affect foreign direct investment, labour numbers, regulations, the value of the pound, and the financial sector. According to the UK government's simulations and alternative scenarios, Brexit will hurt UK GDP from a maximum of 10. 7% to a minimum of 0. 9% in 15 years. However, some countries such as Ireland, Malta, and Cyprus will suffer above-average losses. In addition, changes in the behaviour of the financial sector in the EU and a decrease in the EU's weight on global platforms are expected. Several organizations have published reports on the macroeconomic impact of Brexit, starting with the preliminary referendum through July 2019. These reports try to predict what might happen in the long term compared to the current scenario if the UK stays in the EU. The vast majority of these studies, which do not include forecasts, predict that Brexit will reduce economic growth. However, there are severe discrepancies in the exact magnitude of this adverse effect. The main reason for these different estimates is that Brexit is almost an equation with many unknowns. While it is unknown exactly which Brexit will happen, different results can be obtained due to the modelling techniques used and assumptions. However, each forecast assumes that the UK economy will be affected differently in the following areas. Will increase at different rates according to alternative scenarios. Undoubtedly, the most significant impact will be on trade between the EU and the UK. About half of the UK's trade is with the EU. In 2018, the UK accounted for 46% of exports of goods and services and 53% of imports to the EU. In addition, a significant part of this trade is in the service sector (e. g. , information technology, arts, education, tourism, etc. ). Looking at the foreign trade balance, it is clear that the UK has a deficit with the EU. For these reasons, Brexit proponents often argue that UK trade should be structured to improve its trade with other countries in the long run. According to many, globalization benefits everyone. It generates and distributes wealth, offers cheaper and more varied products and services, and promotes democratization. Despite these claims, evidenced by the surge in foreign investment over the past decade, most foreign investment still occurs among the world's wealthiest countries. Even in the developing world, most foreign investment still goes to stronger countries. Most small states believe that globalization leads to the dominance of the weak over the rich and powerful. Taking into account these and anti-globalization protest movements around the world, we raise the question: "What has globalization done to the sovereignty of states? Sovereignty is used to mean ultimate power. However, sovereignty is primarily associated with states being autonomous and independent from each other in the modern world. Within their boundaries, members of the state can choose their form of government. Another point is that no state has the right to interfere in the internal affairs of another state. Sovereignty is also linked to the idea of ​​controlling cross-border movements. Finally, sovereignty also means that political power can conclude international agreements. States are free to sign any contract they find attractive. Any agreement between states is legal if it was not concluded under duress. This is the new power of sovereignty. In conclusion, while it can be shown that globalization has diminished certain state powers, the sovereign power of the state still chooses not to be part of an integrated global life. It is a choice that a nation makes following its sovereign powers. As supporters of leaving the EU argued, sovereignty can only exist without Brussels.