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 Brexit—British exit from the EuropeanUnion, which was decided upon narrowly through a referendum held in that country—is most likely related to

A) 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.

B) 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.

C) 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.

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

Explanation / Answer

The answer is (A). One major reason for brexit was that immigration was a national issue that affected the internal life of the country.

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