South China Morning Post | June.06.2012
This article, authored by Chris Stephens, senior partner of the China offices, discusses the consequences of Greece retreating from the eurozone. An excerpt from the article is included below.
Despite more than three years of constant news on the euro crisis and ensuing economic, political and social strife afflicting the euro zone, few companies in Asia have thoroughly considered the implications for their businesses of a country's withdrawal from the euro zone or have adopted any steps to mitigate the risks.
As recently as three months ago, a country's withdrawal from the euro zone was unthinkable and discussion was muted, lest such speculation led to capital flight and panic. But today, with austerity, bailouts and growth at a standstill, Greece's withdrawal from the euro is not unlikely. If Greece goes - and exits smoothly - others might follow. Companies in Asia and elsewhere need to be prepared, and companies with risk exposure need to take precautionary action and adopt concrete plans.