- Trade: stronger links mean more potential to benefit from a shift in global trade flows after Brexit.
- Investment: significant foreign direct investment in the U.K. offers opportunity for others as the U.K. looks to stay open for global business.
- Finance: strong financial ties provide a basis for enhancing trade and investment flows.
- Tourism: inflows of visitors will generate more income for the U.K., and a proxy for people-to-people ties that are the basis of goods and capital flows.
- Exchange rate: a sharp drop in the pound following the Brexit vote has put the U.K. on sale, a boon for U.K. exporters, as well as for foreign visitors and investors.
China, Japan Could be Among Asia’s Biggest Winners from Brexit
By: Bloomberg News | Sep 08 2016 at 06:00 PM | International Trade
The U.K’s vote to leave the European Union could throw up some winners in Asia.
That’s because Britain will be forced to deepen links with Asian trading partners and cut new deals allowing access to each others markets. Such a move will throw up opportunities for the likes of China, Japan and Hong Kong who already have the strongest investment, financial, tourist and trading ties to the U.K. according to a score card by Bloomberg Intelligence economists Fielding Chen and Tom Orlik. Losers could include Malaysia, Indonesia and the Philippines.
“As Brexit throws the U.K.’s relations with Europe into confusion, strengthening links with Asian economies that are the main engines of global growth has seldom been more important,” Chen and Orlik wrote in a note. The Bloomberg Intelligence analysts listed five factors to gauge the strength of bilateral relations.