The Effects of the Financial Markets on the Film Industry

The foreign exchange markets have become more and more liquid over the years as global trade has increased, with a daily volume of US $5.3 trillion. The increase in international trade presents some exciting opportunities for both large and small companies across a wide range of industries. For people working in creative industries, it could open up possibilities for international collaboration – and increase access to overseas funding.

But, as last year demonstrated, foreign exchange exposure can also present risks if the rate moves against you. And because exchange rates are a ratio between two currencies, fluctuations can be caused both by events both at home and overseas. So if something happens overseas to strengthen a country’s currency, the Pound can weaken as a result. This can have an impact on costs and profitability for companies that need to make payments in foreign currencies.