The European Union (EU) began in 1957 as a customs union among six nations, and

Question

The European Union (EU) began in 1957 as a customs union among six nations, and has widened and deepened the economic integration of Europe up until the Brexit decision in 2016. The reason for

Brexitlong dash—British

exit from the European Union, which was decided upon narrowly through a referendum held in that

countrylong dash—is

most likely related to

A.

the frustration that EU member nations, for purely political reasons, have not yet moved to reduce tariffs and export subsidies in agriculture to realize all the gains possible from free trade.

B.

the higher welfare benefits for British citizens that would arise from imposing large tariffs on imports from other EU member nations.

C.

domestic market failures that cause the level of social welfare with free trade to be below the level that would result with a welfare-maximizing tariff.

D.

the perception in Britain that the inward migration of poorer EU citizens from the former Communist countries in Eastern Europe have resulted in job losses for native-born British citizens and put a strain on public services.

Explanation / Answer

The right answer is option D.

Explanation: Migration from Eastern Europe has been an important reason for growing skepticism in the UK against staying within the EU. Low skilled immigration from Eastern Europe affected many areas in the UK putting pressure on public services, jobs, housing, etc. The low skilled workers from the UK mostly faced the negative effects.

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