Brexit (Britain’s exit)

Brexit (Britain’s exit) is the impending withdrawal of the United Kingdom from the European Union after the Referendum of 2016 in which a majority of the voters in the United Kingdom voted “yes” in a referendum to leave the European Union. One of the concerns of economists is that, after Brexit is implemented, London will lose its status as a global financial hub. Reports like this one from the Financial Times suggest that Paris is indeed becoming one of the main candidates to replace London as the most important European financial center. One of the reasons is that it is expected that after Brexit there will be more stringent restrictions on migrating to the United Kingdom from the rest of the European Union. Are these concerns legitimate? Try to interpret the current situation with the concept of “external economies of scale”, and make a parallel with Silicon Valley: what would happen in your opinion in the short run and in the long run if the supply of foreign software engineers was shut down?
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