Planning for Greece exiting the euro

An article in the New York Times (September 3, 2012) describes plans by US companies in the event of an announcement that Greece will exit the euro and move back to the drachma. Some of them include sending employees into Greece on trains with 50,000 euros in cash to pay employees, requiring buyers in Greece to pay in advance, lowering the amount of cash in Greek accounts, having accounts in the new currency ready to operate etc. But the scenarios also include one country (Greece) exiting the euro, multiple countries exiting at the same time and the eurozone collapsing as a whole. Will such detailed planning hasten the drop of Greece from the euro, by suggesting a smooth exit with minimal impact? Given the estimated higher costs to manage supply chains in Greece, will prices start rising to cover these costs and thus further slow down recovery ? Will the physical movement of cash into Greece mean the need for banks to worry about inventories of cash outside their normal locations ?

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About aviyer2010

Professor
This entry was posted in Global Contexts, Operations Management, Service Operations, Supply Chain Issues and tagged , , , , , , , , . Bookmark the permalink.

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