Unit 3: Will outsourcing slow as the pound falls in value?

A good BBC video clip here, which poses an interesting question – how should firms respond to the falling value of sterling? One firm, Clippasafe in Nottingham, has reacted by shifting some of its production back to the UK from China.


We’ve got so used to the idea of deindustrialization in Britain over the last thirty years that it can come as a surprise to see production shifting back to the UK from overseas.

Watch the clip and try to pick out and explain the factors behind Clippasafe’s decision.