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To: Taikun who wrote (56754)	12/2/2004 12:08:32 AM
From: NOW	Read Replies (1) \| Respond to of 74559

the response to this should be for them to devalue?

To: Taikun who wrote (56754)	12/2/2004 12:27:24 AM
From: energyplay	Read Replies (1) \| Respond to of 74559

The larger companies will have hedged, but the hedges will run out - most affordable hedges run about 1 year to 18 months. Most smaller manufacturing companies find hedging expensive, complicated and risky. I would guess that today you would need sales over 200 million before it would be a priority. Companies with high gross margins, > 35%, tend to not hedge, and just eat the fluctuation. Distributors and import/export firms with thinner margins will do much more hedging, making it part of their basic business. They will also have shorter term contracts. *********** This will put the Eurozone between a rock (price stability goals, Euro as a store of value) and a hard place - loss of manufacturing jobs to the North America-Asia dollar block, decrease in economic growth rates. Of course, the Europeans can always buy treasury bills ;-)