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USB2U Trying to Help The Economy In Greece

Posted by USB2U on 27th June 2011 | Permalink

It’s tough in Greece. The economy is on its knees and the Greek Government must pass new austerity measures to trigger the release of more bail-out cash from the EU and IMF. Without this additional injection of cash it’s going to be incredibly hard for the country to stay afloat.

The numbers are mind-boggling and without doubt there is going to be a lot of pain because the programme of proposed tax increases and spending cuts amount to 28bn euros (£25bn) over five years and that’s in addition to a raft of new tax rises.

If the Greek Government passes the austerity package then it’s likely there will be a short-term respite not only for the people of Greece but also the euro as a whole. It’s decision time this week but it’s by no means a done deal.

USB2U Team Heads to Greece

USB2U Team Heads to Greece

At USB2U we’re trying to do our bit to help by sending a couple of our team to the Greek islands. They won’t be arriving with huge bags of cash (or boxes of USB memory sticks) but they will be there to spend their hard earned money in the local restaurants, bars and hotels – depending on how things go this might actually translate into a sizeable cash injection.

We’ll miss them whilst they are gone but as a responsible employer we are keen that they get a proper break and come back with their batteries charged. If they can do something to assist the local Greek economy whilst they are away then so much the better!

If the Greek economy can be stabilised and the markets in Europe begin to show signs of settling down it should help strengthen the £ (GBP) and euro against the $ (USD) and ultimately this will drive down the cost of USB memory sticks. Because most USB sticks are manufactured in China the default trading currency is the $ (USD) so any financial weakness in Europe drives up prices.

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Branded Flash Drives – Prices Driven Up By Greek Worries

Posted by USB2U on 28th April 2010 | Permalink

The economic turmoil in Greece is unlikely to enter the mind of anyone looking to source branded flash drives in the UK but the reality is that the current issues in Greece have a direct bearing on the price of flash drives. Why? Well, USB memory sticks, like many other PC components and peripherals are purchased in USD ($) from the factories in China.

Today’s announcement by rating agency Standard & Poor’s to downgrade Greece’s debt to “junk” because of concerns that the country may default has hit the European stock markets hard and most European currencies have fallen dramatically against the dollar (USD).

The impact of this is that prices for memory sticks will increase by circa 2% with immediate effect and all new quotes will only have a very limited “valid for” period because of the increased volatility in the market.

Prices Driven Up By Greek Worries

Branded flash drives are more susceptible to short term currency movements because orders are placed on the factories and paid for as customers confirm their requirements. Whilst some forward buying of stock does take place the wide range of styles, colours and memory sizes coupled with the fact that many customers are now taking advantage of options to pantone match body shells etc. makes it impossible to forward buy too much.

With the improvements in global transportation and the ability to manufacture and ship within days rather than weeks most branded flash drives are now manufactured to hence why an unstable currency and financial market has such a dramatic bearing on price.

Hopefully the issues in Greece will be resolved soon or at least brought under some degree of control and confidence will return to the currency markets.

In the meantime if you are looking to buy branded flash drives be prepared for some short term volatility in pricing and don’t be surprised if you’ve purchased flash drives in the past to find that prices are now higher than when you last bought them.

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