16 Oct Brexit : the “debits” and “credits”
At Taras Financial we often help our clients to grow internationally and we actively encourage our clients to sell more of their products outside their border.
We have business experience across several countries and we speak five European languages and our clients greatly appreciate this type of skill.
So what is our view on the falling Pound and Brexit?
Our profession has always taught us that for every “debit” (let us call it the negative) there is a “credit” (assume we take this as positive).
So what is the “debit” and the “credit” associated with Brexit so far?
The “debit” is clearly the loss of certainty about our relationship with the EU Single market in the near future. At the moment the rules are about to be re-written and none can truly say what the rules will exactly be.
The “credit” so far has been the falling pound and potentially a different negotiating position with other large economies and we refer to the 3 World’s largest economies : USA, China and Japan.
Why is the falling pound such an important event?
The British economy has systematically had a large negative balance of payments for a number of decades (more imports and not enough exports). British businesses are not selling well outside of the UK and this problem needs to be solved. The weak pound will make British exports more competitive in the rest of Europe and, obviously, the rest of the World.
We also want to stress on another very important aspect of international trade and this is pure common sense.
If the UK sells more to another European country, example Spain, the main beneficiary of the trade will be the Spanish economy which will create jobs thanks to the UK exports.
So let us use some common sense here. We have a great opportunity with the falling British Pound and this is an important “credit” of Brexit.
Please contact us on 020 3287 1055 if you would like to know how your business can benefit from the falling Pound.