Guest post 

The commercial sphere doesn't exist in a bubble, after all; it is influenced by a wide range of factors, from the currency values found on the pages of brokers like ETX Capital to social and political movements, conflicts, central bank decisions, and so on.

The way in which businesses are impacted has a number of central themes, all of them well-established and documented over the long years of trade and enterprise that have brought us to this point in time. For those with a vested interest, such as entrepreneurs, they are worth being aware of, for you can only apprehend and prepare for them if you understand the form that they will take.

Here are three of the most common effects of poor economic performance to watch out for...

1: The Rising Price of Imports

For businesses with a reliance on imported goods, poor economic performance can prove disastrous. The primary reason for this is the falling value of the national currency that usually accompanies it. As the value of the pound, the dollar, or their like becomes lower, so the real world value of imports rises, leaving a lower profit margin when a successful sale is made. Over time, this can significantly impact a business' turnover.

2: The Falling Price of Exports

However, the other side of the coin can be positive for some companies. Where the worth of a currency decreases, the real world value of purchasing products or services becomes lower for foreign entities, making domestic businesses far more competitive. With overseas buyers eager to purchase from a newly economical trading partner, the export industry can soar, and the enterprises reliant on it will thrive in their turn.

3: A Dip in Confidence

Unfortunately, a poor economic performance has more negative effects than positive, and one of these is a dip in confidence: from lending institutions, from overseas clients, and from global enterprises looking at your venture with a view to expansion in mind. This is because a negative financial state often transfers from a nation as a whole to the businesses within its borders, making them much higher risk propositions for any with an idea to entrusting them with their capital. Thus, other ventures begin to seem preferable to those who have control of the purse strings, which can leave domestic businesses significantly out of pocket.