The financial status of each country that I offer my service too is vital to know because if a country is in decline or recession then the people of those countries aren’t going to have as much disposable income as they usually would because it is likely that the government are making cuts on jobs, raising taxes etc. Furthermore, my customer in those countries isn’t going to prioritise clothing and festivals but rather the necessities. If I was to choose a festival in a country that didn’t have a strong economy then I risk losing out on revenue that I could be making somewhere else. An example would be when U.K were in recession people didn’t have the money to spend on luxury items and were only able to buy basic items and shop at cheap high street stores. This is when a business like mine wouldn’t have made much profit because there wouldn’t have been a demand for my product because couldn’t afford festival tickets and so wouldn’t need my product or service.
The value of the pound since Brexit has decreased and lost its high value it had in comparison to the dollar and euro. There are two sides to this economic issue one positive and the other negative. The positive being that it means I will have to raise my prices of clothing and the magazine so typically I would be gaining more revenue once I eliminated the cost to run the business. On the other hand this could have a negative effect on the business because if I have to put my prices up then my potential customer could not want to invest their money into a clothing service they don’t know much about and therefore opt for a retailer that they trust like Topshop and Urban Outfitters.
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