What is Brexit and should you care?

It depends on where you live.

What is Brexit and why should you care? Brexit has become one of the most searched for terms on Google, and for good reason. A referendum vote in England, scheduled to take place on Thursday has the power to transform Europe and impact the world economy.

LOS ANGELES, CA (California Network) - Brexit, which is a portmanteau of Britain and exit, is the colloquial term for the referendum vote that Britons and Irish will be casting on June 23. The question is, "Should the United Kingdom remain a member of the European Union or leave the European Union?"

Right now, there seems to be a slight preference for leaving, but the vote may be close. If the British opt to leave the EU, it will have wide ranging, yet very uncertain consequences.

Britain provides about 15 percent of the gross domestic product to the EU, and they pay more into the EU than they get back. Only France and Germany pay more in than Britain.

This imbalance has caused some resentment among the people who feel they are spending money across Europe that would be better spent at home.

One of the great benefits the EU provides to the UK, is the right of all citizens to move freely about Europe. British citizens can travel across Europe and even resettle in another country and enjoy all the benefits of citizenship. Likewise, other Europeans are able to come to the UK with the same privilege.

If the Britain chooses to leave the EU, it is unclear what would happen to the estimated two million British citizens living abroad across the European Union. If Britain agrees to permit the free movement of people, the decision to leave the EU could make little difference. However, if Britain becomes conservative in its immigration policies, other countries could respond in kind.

If the referendum passes, it will trigger years of negotiations to work out the future relationship between Britain and the now diminished EU.

No country has left the EU before, so a British departure could set a dangerous precedent for the EU. If countries such as France or Germany, which are also net contributors to the EU decide to leave, the entire Union could collapse.

It is unclear what impact this will have on the global economy. The EU would command less clout, but England would be more powerful on its own. Much depends on the negotiations that follow a possible yes vote, and how the world reacts to those decisions.

If those decisions ripple across the pond to the United States, then Americans may show concern for Brexit. However, the referendum is not expected to have any immediate impact, so American can rest easy, for now.

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