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Old 27.11.2017, 10:54
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Re: The Brexit referendum thread: potential consequences for GB, EU and the Brits in

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The commonly held belief that when Sterling depreciates, we export more is simply no longer true. Because so much of our manufacturing is in reality assembling imported components, what we might gain on the export price we lose on the materials import costs rising.

As proof of this, Sterling has been low for over a year now but the UK balance of trade has not seen a corresponding improvement.
Selling the same no of widgets at a higher price gives a higher profit, no need to sell more widgets at a lower price.

Profitability for a company is not directly related with UK balance of trade.
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