With the final decision to leave the EU in its famous campaign, Brexit, Britain has faced some significant drops in its currency and economy. Dropping from its original $1.50 value to now as of yet $1.32, this may be the time for foreigners to buy cheaper English goods. “It’s a madhouse in here. It has been a bloodbath. Carnage,” said David Papier of foreign exchange house ETX Capital in London. The effects of the referendum has affected the globe’s markets. The U.S’s Dow Jones had dropped an astounding 900 points two days after Brexit’s decision. Japan’s Nikkei Index has reached its worst since its disaster 5 years ago. The ripple effects spread as far as the Australian and Shanghai markets.
The backlash from the decision has left a sense of buyer’s remorse for many of the English residents in the UK. With uncertainty increasing due to Scotland and Ireland’s protest towards leaving the EU, could Brexit never happen within the next two years? Famous comedian John Oliver quantified the realization by commentating, “Well, You’re actually in luck because it turns out incredibly there is going to be another vote coming up, and it’s happening one week from— OF COURSE THERE ISN’T! THAT WAS THE [expletive] VOTE! IT WASN’T A PRACTICE VOTE! THAT WAS IT!”
How will This Change Globalization and Language Services
The immediate new reality of a cheaper currency is the cheaper labor force that international companies can benefit from in the U.K. and in Europe in general. The ripple effects of Brexit have plummeted the United Kingdom’s currency creating favorable exchange rates and therefore lower cost for English and European workforce. Language service providers may find themselves in a better position to hire translators in Europe than in the USA helping increase their profit margins in the short term.
On the other hand, a stronger dollar will have a longer term negative effect on U.S. exports. Granted that with a stronger dollar energy prices will be lower in the U.S., much of our exports in the 21st century are service and technology related, requiring little energy to produce. A stronger dollar will make these products and services more expensive around the world, leading to lower demand for U.S. products worldwide. This may force certain U.S. based companies to drop their prices to offset the currency change and make it easier for trade and services to continue at the same level. Lower prices mean lower profit margins which will impact everyone involved in the development, production and export of goods, including the language industry.
Why You Should Continue to Use GlobalVision’s Language Services
The European continent, divided or unified, will continue to regard the diversity of language as a great cultural asset and an important repository of heritage. The Union’s council every year invests tremendous resources to maintain linguistic diversity and multilingualism. This will not stop!
With the new changes in the E.U., there will continue to be the same opportunities to use translation services to ensure that the success of one’s business stays well promulgated within the globalized world. For those companies that are impacted by a less unified E.U., localization and translation services will help them build better relations with their clients internationally.
GlobalVision will continue to provide the best quality language services despite the changes that are happening in Europe. You can depend on it!
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