UK manufacturers report strongest export growth since late 2014 - BCC

Thrugelmir

A_Medium_Size_Jock wrote: »

Either way, does increased produce being exported not equate to increased income - and does increased income not equate to greater disposable income?

Depends on who owns the Companies concerned. Means little if the bulk of the profit is ultimately siphoned back out of the country.

A_Medium_Size_Jock

Thrugelmir wrote: »

Depends on who owns the Companies concerned. Means little if the bulk of the profit is ultimately siphoned back out of the country.

But the companies still have employees.
You cannot increase productivity ad infinitum, at some point more workers are needed.
SOME profit may indeed be siphoned off - any way, the original point being as a starter only to induce thought surrounding wider issues.

Tromking

davomcdave wrote: »

What has happened in this case is the pound has fallen in value therefore British people can't afford to buy as many imports and foreigners can afford to buy more British traded goods and services. You have gotten poorer and foreigners have gotten richer. It doesn't matter how many times you call me a Remainer talking the country down it's what is actually happening. The changes in prices is just simple arithmetic and the results are borne out in the data.

I don`t think anyone is arguing with you on the history.
Surely the point is whether the devaluation of sterling and the resultant boost in exports is broadly speaking
a positive or a negative as your are suggesting.
Both China and Germany are accused of hiding behind under-valued currencies and their economies benefit from that, when by happenstance the UK finds itself in a similar situation, is it a negative?
Me thinks you enjoy telling us that as a result of Brexit, we've all become poorer.

davomcdave

Tromking wrote: »

I don`t think anyone is arguing with you on the history.
Surely the point is whether the devaluation of sterling and the resultant boost in exports is broadly speaking
a positive or a negative as your are suggesting.
Both China and Germany are accused of hiding behind under-valued currencies and their economies benefit from that, when by happenstance the UK finds itself in a similar situation, is it a negative?
Me thinks you enjoy telling us that as a result of Brexit, we've all become poorer.

I think that pointing out the folly of what you are doing is important. You becoming poorer isn't the fault of policy or some happenstance, it's the fault of Brexit.

Well done, you won the referendum but I will continue to point out the mess that you've left the country in. This is just the beginning. If you think you dislike my posts now just wait until supply chains start getting cut by Brexit.

You don't even begin to understand what a stupid thing you have done. Oh well, you'll see.

https://www.bloomberg.com/news/articles/2017-04-07/guinness-exposes-debate-over-a-hard-border-with-ireland-after-brexit

Herzlos

Carl31 wrote: »

Our product's have not become more expensive locally, they have just become cheaper for foreign companies

The increased demand from overseas, because it's cheaper, quite often has the result of pushing up the price locally because it reduces supply, unless the producer can keep up with the increased demand.

Say you can only make 100 bikes a month, and you sell 60 locally / 40 overseas, but because your bikes just got 20% cheaper, your overseas orders shoot up by 20%, or 8 bikes. If you can make another 16, then that's awesome, but if not, it's likely to push the price of all 100 up because you've got 8 more orders than you can make. It won't make a difference to the foreign buyers because it's still cheaper, but it's just got more expensive for the locals, where the imported bikes have also got about 20% more expensive.

So for foreigners it's win/win, for locals it's lose/draw.

Thrugelmir

davomcdave wrote: »

I think that pointing out the folly of what you are doing is important. You becoming poorer isn't the fault of policy or some happenstance, it's the fault of Brexit.

In the nineties Germany was the sick man of Europe. A favourable exchange rate did them plenty of favours. At the expense of their neighbours in the EU.

Thrugelmir

Herzlos wrote: »

So for foreigners it's win/win, for locals it's lose/draw.

If the exchange rate rises.

So for locals it's win/win, for foreigners it's lose/draw.

Yet we as a nation are importing more and producing less. Think your logic is somewhat awry.

As an aside. If output is increased. Then unit cost of production is decreased. As fixed cost overheads are spread over more sales.

davomcdave

Thrugelmir wrote: »

In the nineties Germany was the sick man of Europe. A favourable exchange rate did them plenty of favours. At the expense of their neighbours in the EU.

Did it? I don't think importers would think that.

Carl31

Herzlos wrote: »

The increased demand from overseas, because it's cheaper, quite often has the result of pushing up the price locally because it reduces supply, unless the producer can keep up with the increased demand.

Say you can only make 100 bikes a month, and you sell 60 locally / 40 overseas, but because your bikes just got 20% cheaper, your overseas orders shoot up by 20%, or 8 bikes. If you can make another 16, then that's awesome, but if not, it's likely to push the price of all 100 up because you've got 8 more orders than you can make. It won't make a difference to the foreign buyers because it's still cheaper, but it's just got more expensive for the locals, where the imported bikes have also got about 20% more expensive.

So for foreigners it's win/win, for locals it's lose/draw.

Your cost of production is the same, the 100 bikes still has the same material and overhead cost, it's just now demand has increased which you can try and take advantage of, which would reduce unit cost in the long run, or you remain static and let your competition take up the increased foreign orders. Either way, the local bike industry increases output, meaning more income and more employment. How is that and a lose situation? The only thing would be if tariffs were raised in the overseas country to increase import costs

Fella

davomcdave wrote: »

You don't even begin to understand what a stupid thing you have done. Oh well, you'll see.
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People who wanted Brexit & who voted Brexit got what they wanted & were therefore not stupid.

People who wanted Brexit & didn't bother to vote got they wanted anyway.

I think you'll find the "stupid" people are all those who wanted to Remain but were so smug in their certainty that we would they didn't bother to vote. Or possibly they were just to lazy. Those are the people you should be angry with.