How Brexit Could Affect the Promotional Products Industry
Just less than a week after voters shocked the world by voting to leave the European Union, we're starting to see economic ripples all across the world. Though U.K. will feel the majority of the impact from the referendum, folks in the U.S. still will see some changes as a result of the vote.
After the results came in, the global stock market became more volatile. Because of this, American consumers, the majority of U.S. economic growth, likely will be more wary to make major purchases, thus slowing down economic growth, CNN Money reported.
"The keys to whether the U.S. economy is affected significantly will be whether equities tumble enough to have a major impact on business and consumer confidence," Jim O'Sullivan, chief U.S. economist for High Frequency Economics, told CNN Money.
As of last Friday, the U.S. dollar was up on the British pound 6.3 percent. That is the biggest single-day gain since 1967, CNN Money reported.
U.S. companies looking to sell overseas—think international companies, like Nike and Under Armour—might have a tough time, as their products will be more expensive to foreign customers.
However, for American travelers, this means that the trip they've been wanting to take to England might be more affordable than it has been before. This could be a golden opportunity for distributors to reach out to travel companies that might be looking to entice customers into taking the transAtlantic flight.
Also, travel will become more difficult for citizens of EU members to get to the U.K. once this takes effect. Because of this, CNN speculated that the U.K. will see less tourism from other European countries.
But, because it will be cheaper for Americans to visit, now would be a good time for British tourism offices to start advertising to travelers in the U.S. That also presents a good opportunity for promotional products professionals to look into customers trying to draw travelers across the pond.
Do you anticipate the U.K.'s vote affecting your business? If so, how? Let us know in the comment section below.