http://www.express.co.uk/news/world/674682/Why-Denmark-wants-Britain-Remain-Finance-minister-predicts-economy-CRASH-Brexit

During our introduction to international business, I posed the question on the significance of countries coming together and forming a union.  This is a common phenomenon – in the Caribbean we have the CARICOM Single Market Economy (CSME). Central American countries have formed the Central American System and European countries have formed the European Union which is the focus of this article.  There’s currently a referendum in Britain where the electorate will decide on the fate of the European Union.

Britain is currently the power house of the European union and the article highlights the impact that Britain will have on Denmark if Britain was to make an exit.  According to the country’s finance minister, if this happens Denmark economy could crash. The question is why this assessment was made?  What about Britain leaving the EU, besides being the power house, could lead to such an extreme outcome?

There’s several explanation but I will focus on a concept that was discussed in class – Foreign Direct Investment (FDI).  This is an investment made by a company in one country into a company in another country.  Britain has the largest percentage of FDI’s of all the other countries in the EU and I think that as such Britain is perceived as the gateway to other European countries.  If Britain exists (Brexit), it will be difficult for the other countries to attract investments which has a direct impact to the their economy.