It would seem this is a good time to make acquisitions in Europe with the euro being so low. But you can never really count on currencies remaining stable, which is why companies account for currency fluctuations in the first place. In general, high-tech seems to fare better than other industries during a downturn. Maybe this situation is unique to Europe this time around.
Should we expect Euro to worsen to reach near dollar parity? If this does happen who will profit the best? I have heard many times people complain that Euro was too strong and after all the current weakness of the European currency might be what many have hoped for.
At this point I think the most important goal is to avoid total abandonment of the Euro. This would severely impact lending institutions and existing financial agreements internationally.
I think the big issue behind some of the disagreements are like any other conglomerates, the countries in the better financial situation are upset at the countries that are hurting the EU. Total dissolution of the Euro is always a possibility, but would do much more harm than good right now.
Hospice - I don't know how far the euro will slide, but I don't suspect it will fall to a one euro-one dolar ratio. Look at this chart/story, and the cycle becomes pretty clear: http://blogs.reuters.com/felix-salmon/2011/12/14/should-we-care-about-eurodollar/
Stochastic - I think you're right about what will happen if the euro tanks altogether. Doubt that will happen. There appears to be a concerted effort to save it.
Thank you for the link. It does seem that analysts have been predicting that for months now. In a 2010 article, it was predicted more rough road ahead for Euro. I guess european leaders have done whatever they could to prevent this from happening. But the main question is how long the Eurozone will still stand.
The problem with the European financial crisis is similar to the problems of joint family where all independent adults live together and try to run the family according to their wish. The only solution seems like either everyone go their separate way or an adult take control of the situation and take some tough action to put the house in order. Both ways seems like offering a long term solution only and no immediate relief to the market.
Nice analogy. Thing is most of the working adults in this house called Europe are tired of living under threats and leadership of the Joint Superpowers of the Eurozone(Germany and France).
So expect them all to go their seperate ways very,very shortly.Which will actually end up boosting growth very sharply(after the initial Devaluations).
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Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Euro-Crisis: What It Means for High-Tech Firms Join EBN Editor in Chief Bolaji Ojo and Contributing Editor Jennifer Baljko on Thursday, July 12, at 10:00 a.m. EDT for a Live Chat on high-tech and Europe's economic difficulties.
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Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
While no one really can accurately predict the future, we can take guidance from another Drucker saying which is the best way to predict the future is to create it.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
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Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.
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