Sunday, February 23, 2014

Can Scotland be independent of the Britain ?

A recent discussion in England is whether Scotland should separate itself for Britain. Currently although being part of England, Scottish don't have the right to vote for the government in London, thus the benefit of having a representative government is taken away from people. However, forming an independent state is not something simple. 
A survey carried out by Korn Ferry questioned 29 chairmen of 32 FTSE100 companies. The survey shows that two- thirds of FTSE 100 chairmen believe that Scottish independence would be bad for the British business. It also shows that 86 % believed it would be bad for business if the UK left the EU. 
On one hand, Chairman of Standard Life worries independence would threaten the loss of its UK tax exemption rights, which negatively affect its pension business, BP chief executive warned uncertainties for energy sector, chief executive of J Sainsbury warned higher food prices and chairman of Orion Group worries his recruitment business would have to move out of Scotland due to uncertainties. 
On the other hand, Royal bank of Scotland said it could adjust and continue doing business on both sides and TSB Bank said its issue was not related to the independence debate. 
Previous survey of 33 retail chairmen also showed concerns about higher costs for consumers due to higher costs in the supply chain and extra administration.

The new system (new government, new currency, new policies, new administration, etc.) probably will cost a lot more than the benefit of being independent. It may cause to the opposite effect of synergies, in which both UK and Scotland will be worsen off by more than just short term cost. Although the matter was brought up, I think this is rather impossible. However, it is possible that some political policies may change regarding the relationship between UK and Scotland

http://www.ft.com/cms/s/0/757b884c-9be6-11e3-afe3-00144feab7de.html#axzz2uBmeK16S

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