Discuss the impact that Brexit may upon the UK economy (25 marks)

When analysing the impact that a trade agreement may have upon an economy there are three key areas that must be assessed, these are imports and exports, migration and trade. It is important to focus on the particular impact that Brexit will have, given recent announcements that the UK will pursue a hard Brexit it would be important to explain the impact of leaving the Single Market and how it would affect the factors listed. Leaving the Single Market would obviously make it more expensive to export to the EU which is the UK's greatest export market, due to the CET, which would have a negative impact on UK exports if a trade deal is unable to be struck, yet this may open the door for domestic firms to fill the gap and reduce UK unemployment.

With so much uncertainty around how EU nationals within the UK will be treated post-Brexit it is difficult to assess the impact it will. What is certain is that if a visa system is implemented, migration from the EU will shrink, this could have significant effects on certain UK industries such as the NHS where foreign nationals make up a large proportion. However, there is still a significant amount of migration from non-EU countries, which leaving the Single Market will have no impact on.