Title: Single Currency: Pros a& Cons
Headings: Advantages and Disadvantages of a Single Currency.
Advantages and Disadvantages of a Single Currency.
Content: Within the single currency union, all prices would be quoted in the same currency and this facilitate easy price comparison. Firms no longer could mask their high prices in local national currencies. Consumers could now compared the Euro prices of say coffee powder in Belgium and the Netherlands with ease. This supposed to encourage more cross borders businesses. This would also encourage firms to improve their efficiencies and competiveness in the single currency area. Facilitate market expansion. However, prices differences would still exist in a single currency area due to transportation costs, storage costs, and other operation costs. There would be price differences between a bottle of 500g ABC olive oil sold in the local Mr. Pinocchio store and that sold in the local chain shopping mall. There would also be price differences between a bottle of 500g ABC olive oil sold in the local Mr. Pinocchio store and that sold in a store in another city or even country. Such price differences and price transparency may encourage firm ABC that sells olive oil to expand its market within the currency area.