Trade Policy

Exchange Rates
Analyzing the UK economy, a rise in the exchange rate in the
UK could contribute to further falls in construction prices as
it is likely that cuts in public capital construction projects will
not be compensated by improvement in the private element
of the construction sector
Exchange Rates
Exchange Rates
Although the exchange rate dropped dramatically to almost
parity in 2009 UK manufacturers of construction materials
have not been able to increase their market share either in
the UK or in the export market.
While there are some signs of improvement, an increase in
the exchange rate will favor importers
Exchange Rates
When the euro exchange rate fell in 2008-9, construction
costs did not rise to compensate for the weakened UK buying
power.
This conveys that the basic laws of supply and demand
within the construction supply chain continue to have a
considerably greater effect on costs than the effect of
exchange rates.
Imports vs Exports

This graph, on the other hand, shows that there is clearly a

constant trade deficit in the construction industry of the UK for
the past twenty years.