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Business Reaching Across the Pond and the Brexit Situation

Pound currency background

Business Reaching Across the Pond and the Brexit Situation

Posted by Payroll Data Processing in Blog Aug 01 2016

Your business deals may be affected by the latest news following the Brexit situation in England. But that doesn’t mean you should not do business with them altogether. Here’s what you need to know when thinking of expanding your business on an international level.

Since Brexit, most finance companies such as Charles Schwab and Bank of America have had some financial problems. But it doesn’t mean that the companies are finished with England, it just means that the company’s expenses might need some time to regain its stability. That is the same with every business that would want to work with consumers in England. So far, the country is doing a decent job in trying to keep the British pound stable. It could be a great advantage for your business if you want to make business deals with other companies in England. Since the pound is somewhat stable, you could effectively make a bargain profit in business deals and new clients. Keep in mind whatever finance you do should be monitored closely because of the recent changes in political development.

Free-Trading is one of the biggest goals England wants to achieve after leaving the European Union. The reason why they want to focus on trading outside of the island, is because the taxes and finances will be much different than that of European Union countries still preceding their loyalty to the Euro note and coin. Free-trade through England will become the country’s biggest economic boom that everyone wishes to establish. So by not changing any laws or renegotiating with other countries on free-trade, the country could effectively create more in finance and expenses alone than what they could have made in the EU, since all those free-trade agreements were regulated to the most crucial points as possible.

As an American entrepreneur, our finances will have the upper hand. Since the Brexit vote, our dollar has increased by 6.3%, meaning everyone would probably not want to trade with us because of the uncertainty in England and having to wait two years for the EU to regain its free-trade agreements with the English Isle. However, we could effectively start free-trading by the end of this year, hypothetically, and make more money from the uncertain markets following the Brexit crisis. Meaning that buying products or clients overseas is much cheaper now than it will become in the following two years.

Yet, as expansion plans go for American businesses, you may want to take a raincheck now before you start to build overseas. Currently, all American products are highly expensive at the moment. Many foreign buyers may not want to purchase any American goods until two years after England and the EU have agreed to new terms. But purchasing goods from the English Isle or from any other foreign country is dirt cheap, so the possibilities are endless.

Finances can be tricky to master, but more importantly the finances of expanding your business overseas may cost you now than later. If you wish to set up terms and agreements in gaining clients, the Brexit situation will help you in the present moment. But always proceed this new market with extreme caution.