Exporters should take advantage of the strong € Euro
The Euro is at its strongest since its launch 9 years ago, at 1.116 Euros to the pound/0.745 EUR to the US Dollar.
While on the surface, this sounds like bad news, and it is in terms of our import buying power, as well as the cost of living which (reduced petrol prices aside), looks set to continue climbing well into 2009; for exporters it’s good news.
The tide has turned: where once the UK and USA could count on importing goods from overseas cheaply, and it was our own goods and services that were perceived as expensive by other nations, the shoe is, for the time being at least, firmly on the other foot.
The reduced value of the traditionally leading currencies makes goods and services UK and US companies sell abroad appear more competitively priced, so now is a good time to sell to countries that are part of the Eurozone, and see this decline in the value of these currencies as an opportunity for business.
Having a foothold in more than one market spreads your risk, so if your domestic economy is not faring well, then you can focus your attention on other markets and hopefully weather the storm.
Tags: Exporting, International Trade, value of the Euro, Value of the pound
Sunday January 4th, 2009 at 05:30 PM
I would like to know if an Americam owned printing firm based in this country exporting goods and know-how to France and Germany will benefit from a falling pound. I have in mind print products that are printed in this country and exported to the above countries
Sunday January 4th, 2009 at 05:34 PM
Will an American owned printing company based in the UK,exporting to France ad Germany expect to benefit from the fall in value of sterling?
Monday August 10th, 2009 at 01:03 PM
Exporters can get help with any aspect of trading internationally to take advantage of the weakened pound.
Overseas buyers are hindered by the recession and UK companies now seem like the wiser choice, but there aren’t enough UK companies who (look like they) want to export.
Translation companies, by proxy, are involved with exporting and I would like to know what the verdict is on Export Toolkit http://www.exporttoolkit.co.uk. This is the type of package first time exporters need.
Thursday August 27th, 2009 at 12:30 PM
Hi Peter, It depends if you intend to repatriate the profits to the US. Recently (over the last 3 months) the exchange rate between the US & UK has been fairly stable. So the short answer is yes, your business would profit more from exporting to the Eurozone. I hope this helps.