Comments on: More on exchange rates: Winners and losers of a strong British pound

By: Charlie.Gao

Charlie.Gao — Sat, 03 May 2008 04:10:25 +0000

I think in the long run, the winners of a strong British pound will eventually start losing and the losers of a strong British pound will start winning because let’s face it, the pound isn’t going to stay strong forever. As their currency rises, exports will decrease because goods are relatively more expensive and AD will decrease which will lead to a depreciation.

By: Dana Y.

Dana Y. — Tue, 29 Apr 2008 18:09:33 +0000

1. Operating airlines is a two way business as it operates in many continents. Thus, British Airlines may benefit in U.S. airports as the cost of operating (airport taxes) is relatively lower. At the same time, British Airlines will be harmed by U.K.’s strong currency when operating in their home country: the airport taxes as well as the costs associated with food and food will be much higher. Not only that, British Airlines may have to engage in price discrimination as U.S. passengers might be unwilling to pay so much for tickets (unlike those in U.K., who although are as wary of their money, might be more accustomed to higher prices).

2. Businesses that solely operate on pounds may benefit.

By: Howard Jing

Howard Jing — Tue, 29 Apr 2008 16:10:55 +0000

1. British airlines benefit in that more British citizens will be enticed to travel abroad with their strong pound, however other citizens such as Americans will choose not to travel to the UK due to their weaker currency. British airlines will also find it cheaper to operate in foreign countries.

2. Investors in the British pound will also benefit from its rise in value.

3. However, importers of British goods will face rising costs, so they will be harmed.

By: Annie Sung

Annie Sung — Tue, 29 Apr 2008 15:22:17 +0000

British Airways and investors in the UK would definitely benefit with the stronger pound as the airline company would incur more profit (but may lose some customers in the process) and investors’ assets will increase in value. British exports, however, would become more expensive, so countries who trade with the UK, such as the US will be hurt.

By: mina.song

mina.song — Tue, 29 Apr 2008 14:29:06 +0000

I think everyone has agreed that british will benefit as value of the pound rises. But, I think it also could harm british because as the value of the pound increase, travelers to UK could decrease.
And most of the british ppl will benefit by less inflation as the value of pound increase and other than british ppl, spectators and investors also could benefit from it.
But ppl who imports goods from UK will harmed because relative price of same product would have increase.

By: Julie

Julie — Tue, 29 Apr 2008 13:21:05 +0000

1. traveling will be cheaper for the british. but more expensive for americans, there will also be less trips to britain from the us.
2. Foreign investors will benefit from the strengthening pound as well as businesses in britain who import from the US. benefits include people who consume US goods in britain.
3. Importers of british goods from the us will be harmed.

By: Jonathan Lau

Jonathan Lau — Tue, 29 Apr 2008 13:13:02 +0000

1. British airlines would benefit in that operating costs would be cheaper since the pound is worth more. However, British airlines would seem more expensive compared to other country’s airlines, which would cause travelers to find cheaper alternatives.

2. British citizens and investors would both benefit because it would be cheaper for British citizens to buy products from other countries and investors would obviously make more from higher interest rates.

3. Foriegners would be harmed because British products would seem more expensive as compared to domestic products. In addition, British producers would also be harmed because of higher production costs.

By: caleb

caleb — Tue, 29 Apr 2008 13:06:49 +0000

1. British airlines would have more people going from Britain to the US to buy products. They would be able to get more out of their money in the US than in Britain.
2. British consumers would benefit from a more valuable pound, and exporters to the UK.
3. People in countries that want to receive British business would be hurt because the British would be seeking for more goods at a higher quality, which with a stronger pound, they can both afford more goods at a higher quality from the US.

By: Jessica

Jessica — Tue, 29 Apr 2008 12:27:42 +0000

1. British airlines have both British customers and customers from other nations. It is relatively more expensive for the foreign citizens to take British airlines with a stronger pound, but it is relatively cheaper for the airline to pay its expenses, such as its repairs and its fuel costs.

2. Basically, British citizens benefit from the stronger pound because it is relatively cheaper for them to buy products from other nations.

3. People from other countries are harmed because it takes more money to buy the same good.

By: Jinny

Jinny — Tue, 29 Apr 2008 11:24:24 +0000

1. Well, the benefit is that they get comparative advantage in operating the British airlines. However, the trade-off is that the strong currency might scare off customers who would turn to substitutes for Brit airlines.

2. Obviously, people who have invested in England! People with pounds and who are investing in British stocks and bonds and so on.

3. I guess foreigners will be harmed since now they have to pay more to get British products.

By: kevinma

kevinma — Tue, 29 Apr 2008 08:24:13 +0000

1.They will benefit in many ways. It would be cheaper for them to operate in foreign countries because of cheaper operating cost since the pound is stronger. It will also harm them because customers will not like their high prices.
2.People who have all their money in pounds. Their money would become a stronger currency and they would be able to exchange for more of another currency using the pounds. Also British investors.
3.People who buy imports from England will be harmed because it will cost more for them to get the same amount of goods.

By: kevinhuang

kevinhuang — Tue, 29 Apr 2008 08:05:28 +0000

1. British Airlines would benefit because they would have more spending power in the US; however, the US would fly less on British Airlines because they are too expensive for Americans.
2. Foreign investors that invest in British Pounds will find an increase in their spending power.
3. Anyone who wishes to purchase British goods would have a harder time because of their relatively higher prices.

By: emilyyeh

emilyyeh — Tue, 29 Apr 2008 00:58:01 +0000

1. The British Airlines will benefit because their earnings in pounds certainly helps increase their purchasing power on a global level, but also may diminish their consumer base internationally, decreasing their profits.
2. Overall, the British population benefits from the stronger pound because it helps combat inflation.
3. The competitiveness of the British industries declines however, as imports of foreign goods appear to be relatively cheaper.

By: Calvin Lu

Calvin Lu — Mon, 28 Apr 2008 15:34:03 +0000

1. British Airlines Benefits from cheaper operating on American airports, but hurt from fewer customers due to higher price (British Airline can be consider an export for the Brits, ana a import for the Americans.)

2. Investors that invest in Britan will benefit as the value of their profit had increased

3. Those who use pounds to buy British goods are harmed by stronger pound.

By: Jennifer Choi

Jennifer Choi — Mon, 28 Apr 2008 15:09:30 +0000

1. British airlines will benefit from a stronger pound because the costs of operating in airports will be relatively cheaper and also their gains will worth more than before the appreciation. They are hurt at the same time becuase customers will find their airline fee much more expensive and might look for other airlines.
2. This will also benefit British investors as their investment will bring relatively bigger profit.
3. Those who pay in pounds to buy British goods will be harmed by stronger pound.