The global market can affect anyone starting their own business, but the situation can be aggravated for those from a certain country.
Your business not only depends on good marketing strategy, but also the economic market of the country. On television or radio we are bombarded with terms like “inflation”, “currencies depreciating” and “recession”, all because they have a marked impact on companies’ performance. But instead of feeling intimidated by such jargon, business owners should empower themselves by learning these terms.
A thriving market is good for business
The currency of a country will always fluctuate, and those who can predict the markets will tell you that there are never any certainties. This is not necessarily a bad thing; on the contrary, it can be good for a country to have a weaker currency as it indicates that people or companies from overseas can afford to buy more goods and services from that country.
The downside and upside of a country’s economy
However, there is a twist. If the country’s currency is weaker and business owners buy goods or services from a different country, they will be getting fewer goods or services at the same price. It’s advisable for every business owner to read publications that will keep them informed of the latest economic matters and marketing trends. Being in the know can only positively affect a business.
The summary of economy advantages and disadvantage
Weaker currency: An advantage for people who sell goods/services to other countries - but only applicable for those who use a stronger currency.
Stronger currency: An advantage for people who buy goods/services from other countries - but only applicable for those who use a weaker currency.
The Chinese hand in African markets
It’s thought that the Chinese regime is purposefully degrading their currency in order to make Chinese goods cheaper to the rest of the world, keeping in mind that China has already got cheaper labour than most countries. The outcome has affected the emerging market currencies, thus depreciating other countries’ currencies as well.
A depreciation of Chinese currency makes their exports much cheaper and that could lead to more imports from the Asian nation. The saying holds true that business is business, but this can hurt local businesses, especially in developing markets.
Marketing experts suggest that business owners equip themselves with knowledge in order to keep up with the global events so that we can prepare better in times of need.
Find out more about African entrepreneurship and the latest business trends here.