Exchange Rates

• What does a strong pound mean?

  • Imports cheaper
  • Exports expensive
• What does a weak pound mean?

  • Imports expensive
  • Exports cheaper
• Is a strong pound good for UK exporters?

  No - exports more expensive
• Is a strong pound good for UK importers?

  Yes - imports cheaper
• How can a weaker pound impact the strategic decision-making of a UK importer?

  Could encourage a change to domestic suppliers or re-shoring
• Is a weak pound good for UK manufacturers that exports?

  Yes - Exports cheaper
• How can a change in exchange rates impact marketing decision-making?

  Has to reconsider international pricing strategies
• How can a change in exchange rates impact operational decision-making?

  Looking at changing supply chains (e.g. buying more locally if the pound is weak)