Fecha de publicación: 16/04/2015
How affects the parity variation?
Who wins, who loses?
Are starting conditions for re-locating companies in the same economic environment that has its destination the product they manufacture?
It is complex, but we would like to put some light on the situation that was created earlier this year with the fall of the Euro against the Dollar.
Since a few days ago the slot fans see how some slot manufacturers are beginning to raise product prices. Were we not coming out from the crisis and the maintenance of prices was helping the recovery?
We will try to explain the situation in a simple manner considering that the two main actors are the Euro and the Dollar. Central Banks rush monetary policies to meet their national economies and as the European Central Bank tends to rates close to zero interest, the American market some months ago maintains a substantial upward interest rates. This has meant that in a few months the depreciation of the Euro against the US Dollar is spectacular until arriving now nearly to parity. And forecasts indicate that in summer can be paid 1.20 Euro for 1 dollar.
And in what affects slot car world? Simple. A large part of slot brands are European (Euro) but manufactured in China in which is paid in dollars and in a few months the production has gone up by this rate by 25%. Solution: pass this increase into the final price?
We must distinguish between large and small manufacturers. As long as they move large numbers of business and have their own economic weapons to assume or guarantee currency exchanges variations, allowing them to keep the price at least for now or even delay some shipments, small, with less margin for economic maneuver have no choice to increase the final price of their products. And better do it now that during the Christmas season.
European manufacturers that do not produce in China can benefit from this situation. First because their production costs do not suffer variations and secondly because by not increasing prices his articles are more attractive to Asian, British, American, Latin Americans and Norwegians markets.
Example: A new slot car priced 40 Euros in a European online store cost some months ago to US end user $ 50. Today it costs $ 10 less and if the dollar forecast keeps going until 1.20 the same car could cost $ 34.
Brands that have raised prices cannot "benefit" the interest of this market but those that have kept prices and those not affected by the Chinese market may be attractive to buyers from outside the Euro influence. Equally attractive it becomes all the stock.
Instead eurozone shoppers can only hope that the major manufacturers, business drivers of this hobby, are able to take on this increase in costs and not pass it on to the end customer, and direct their purchase options only to the local market.
And manufacturers that depend on China only remains to wait decisions of major central banks to advance, postpone or even cancel projects until new times.

One wonders then if are starting conditions for re-locating companies in the same economic environment that has its destination the product they manufacture.
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