How A Strong US Dollar Will Impact UK Businesses?

A strong US dollar can mean a lot of different things for the world’s economies. What impact could it have on UK businesses? If you are a business owner in the UK, should you be concerned about the rise in value of the US dollar? Or should you dismiss it as something that occurs often in currency values? Whether the impact is good or bad, the US dollar is on the rise and UK business owners could begin feeling the effects soon.

Strong US Dollar

From tourism to goods and services, every UK business can expect to see some sort of impact. In fact, the tourism trade will receive the most noticeable effect of a rising US dollar as more vacationers from the US will visit the UK. This could also mean that businesses in and around tourist destinations will see more business as vacationers tend to spend more money of impulse items when travelling. What does this mean for the hospitality industry? Hotel and restaurant owners will also see an increase in sales as the tourism industry picks up.

What about the businesses selling their products abroad? Will they see any impact from a rising US dollar? With consumer spending in the US on the rise, if your UK business sells products in the US, you will be sure to see an increase in sales and profits even though the £ may be dropping slightly. So far, a US dollar that is rising in value doesn’t look so bad. There is another side to this though.

As the US dollar strengthens, exports from the US will increase in price for foreign firms, and trading could be affected for companies dealing in more than one currency. This could mean that UK businesses would have to be more careful with their currency conversion timing and ensure that they closely follow the trends in the currency markets to get the most value out of their own currency.

UK companies with operations in the US also need to be sure that their assets and liabilities are valued in the same currency as much as possible. This is to ensure that any strengthening or weakening in either of the currencies do not affect their ability to finance their operations or business growth.

There are many things that UK businesses can do to protect themselves from a rising US dollar. By following the currency markets closely and remaining focused, many UK business owners will remain successful until the pound regains its growth.

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5 Surprising Facts About The UK Economy

The economy, something that all of us talk about either in cafes, during lunch breaks at work or when the conversation takes a turn for the boring and you need a last ditch effort to revive it. Whether you understand the UK economy or not, it is always a go-to topic for discussions with coworkers, family and friends. Aside from the typical “economy speak” that we may have learned from listening to our parents, we don’t have anything new to say when the topic arises. For those times, we have created our list of 5 Surprising Facts About the UK Economy. Read along and keep these in mind whenever you need to show off your knowledge of our economy.

ukeconomy

Fact #1. The UK economy sees more growth in the north. You don’t have to be in London to be successful in the UK. In fact, more new businesses are founded in the north in areas such as Manchester, than any other area in the UK. There has been an average economic growth of 74% in the north compared to London’s 42%.

Fact #2. Britain spends less on investments than any other G7 economy. In 2013, the UK spent 15% of GDP on investment which is just behind other G7 economies such as Germany and Italy with 17%. In comparison, France spent 25% of their GDP on investments.

Fact #3. The UK’s homebuilding rate is among the worst in the world. The UK’s homebuilding rate of 0.21% is among the lowest in the Western world but that does not signal a housing shortage just yet. This is a good indication of consumer uncertainty and usually follows a definitive pattern.

Fact #4. The number of foreign-owned businesses in the UK has decreased by 3% since 2009, but their contribution to UK value added has increased by almost 19%.

Fact #5. Almost a quarter of foreign-owned businesses in the UK are owned from within the USA. Foreign investment is an important part of any economy as it not only adds a financial boost to the country, but it also shows that there is global confidence in our country as well.

Whether traditional or digital, the UK economy is strong and has proven this through many recessions, downturns and economic shifts throughout history. These facts are just some of the interesting points of our economy that will ensure you always have something to talk about whenever needed in conversation.

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