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| Topic: |
History
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| Number of pages / Number of words: |
5 / 1246 |
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When buyers in other countries consider buying a British product it will be about twice as much as products made in the Eurozone because of the conversion in currency from Pound to Euro. This can also play a role when companies decide where and if they will export their products to other countries. If the exchange rate risk is too great because of the difference in the Pound and Euro then the company will not invest in exporting their product, which in turn will mean less business and less profit...
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If the exchange rate risk is too great because of the difference in the Pound and Euro then the company will not invest in exporting their product, which in turn will mean less business and less profit. Obviously this will cause British companies to lose money, which can lead to job cutting, which will put the UK economy into a downward spiral...
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