Making the exchange rate less important

A fall in the external value of the currency can be manna from heaven for hard pressed manufacturing businesses looking to fight against a declining market share in domestic markets and wanting to boost their sales volumes overseas. So the recent sharp depreciation in the value of the pound sterling against the Euro has been a welcome shot in the arm for UK industry. How well placed are they to take advantage? This excellent short BBC news av clip gives students a real opportunity to evaluate just how significant is the exchange rate these days. It visits a Welsh manufacturing business that has learnt that maintaining high production quality and improving other aspects of their non-price competitiveness - including meeting tight order deadlines - can be just as important in keeping the order book full and a commercially viable price.