The UK is Europe’s second largest economy and the world’s fifth largest as measured by GDP, according to the International Monetary Fund. It is an important global hub for industry and technology. But Britain holds an even more strategic position within the global economy as a center of trade and finance. So the potential risks of a change in its status have important implications for the way companies protect their assets and businesses finance their activities, fund pensions, manage their people and operate their supply chains.
Should a majority of Britons vote to leave the EU, there will be many possible scenarios for how this could play out. For example, could Britain opt for the Norway option of participating in the Single Market through the European Economic Area (EEA), but with no influence on policy? Or will it seek a Swiss-style relationship with its European neighbors where bi-lateral arrangements replace membership in the EU and other European trade blocs? Beyond near-term uncertainty, each of these scenarios carries a variety of unknown longer-term consequences for businesses that operate in Britain and the EU, and possibly for the global economy as well.
o What does it mean for capital markets?
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