How the U.S. Dollar Impacts Translation

By Sarah-Claire Jordan

In the wake of Brexit and the impending implications, which we may not truly see until two years from now, economic issues are at the forefront. The pound has already dropped significantly, now valued at around U$1.32 after being valued at U$1.50. This is good for some, like those interested in getting goods from the UK at a much cheaper price, but in the end it has a ripple effect that everyone will feel sooner or later.

One area where the ripple has reached already is the U.S., and it means two things mainly: the U.S. dollar is now stronger in comparison (to both the pound and the euro), and the stock market has gone down a whole lot of points. On the one hand, a stronger dollar sounds like a positive thing, but the reality of it is not so sunny. The products and services provided by U.S. companies will be more expensive to outsiders, and this will surely cause them to think a bit more before doing business in the U.S.

This loss of business will probably spur many companies in the U.S. to lower their prices, meaning they will ultimately be losing out on profits and making much less than they made before. A company that earns less money than it did before ultimately has to make some changes, which might include everything from budget cuts to laying people off. This, of course, might include those who work in the translation and localization departments of a company, as they might be deemed not as crucial to keeping things running as others departments.

One other way this may directly affect the translation and localization industries in the U.S. is the fact that labor will be cheaper in the U.K. and countries in the European Union. Companies that used to work exclusively with U.S.-based translation agencies might start to consider how much money they could save simply by switching to an agency that wasn’t linked with the U.S. dollar. Foreign companies might also be hesitant to reach out and work with U.S. translation agencies, even if they might have better track records, due to fear of spending more than they need to.

Ultimately, these companies needn’t worry about losing money from working with a U.S.-based company, be it a translation agency or something else. There will always be a need for translation and localization services, and eventually the economic changes will even out. This tumultuous time might even warrant more of a need for translation services, as so much new information in terms of policy changes, laws, and economic policies will need to be available for everyone in the European Union and those who do business with it.

The world is changing, yes, but even if it is a bit bumpy for translators and other professionals, it will smooth out soon enough too.

For an overview of Alpha Omega Translations’ expertise, visit our financial translation page.

Tags: financial translation

Category: Business Translation