Title: MGF2351 Tutorial 7 week 7
Headings: MGF2351 Tutorial 7 week 7
MGF2351 Tutorial 7 week 7
MGF2351 Tutorial 7 week 7

Content: Q2. What effect is the creation of a single market and a single currency within the EU likely to have on competition within the EU? Why? Increase in competition, more effectiveness, no barriers, NO LOSS IN MONEY EXCHANGE, makes SHOPPING easy  By creating a single market and currency, member countries can expect significant gains from the free flow of trade and investment. This will result from the ability of the countries within the EU to specialize in the production of the product that they manufacture the most efficiently, and the freedom to trade those products with other EU countries without being encumbered by tariffs and other trade barriers. In terms of competition, the competition between European firms will increase. Some of the most inefficient firms may go out of business because they will no longer be protected from other European companies by high tariffs, quotas, or administrative trade barriers. Companies from those countries that have not adopted the euro may find that their costs are higher as they deal with currency exchanges. In addition, because it will be easier to compare prices across markets, firms in the euro zone will be pushed to lower prices and become more efficient. 9.