Title: Benefits Of Single European Currency - Free Coursework from Essay.uk.com
Headings: Benefits of single european currency
Benefits of single european currency
Examine the potential benefits to European manufactures and consumers of single European currency

Content: Consumers would not have to change money when traveling within the Euro zone, and would encounter less red tape when transferring large sums of money across borders. Travelers will no longer be forced to change money and pay banks the commission charges. A consumer might wish to make one large purchase or transaction across a European border such as buying a holiday home or a piece of furniture. A single currency would help such transactions pass smoothly. Likewise, businesses would no longer have to pay hedging costs which they do today in order to insure themselves against the threat of currency fluctuations. Businesses, involved in commercial transactions in different member states, would no longer have to face the costs of accounting in different currencies. As the fixed European currency is implemented firms say from the UK would be able to predict accurately the exchange rate of their currency with that of foreign currency this would be beneficial for firms as they would have a clearer idea of when how and where to invest in. Thus the net investment of the EU region would increase and as supply increase due to investment the revenue of firms would increase. On the other hand the increase in investment would increase competition forcing efficient firms to grow and expand into other markets outside the EU such as the US. This would make them more competitive and allowing them a larger chance of surviving under international competition.