the euro
The Euro To most people in the United States hearing the word Euro brings about blank stares. Ask this same question in England or another European country and it means bringing Europe together under one common currency. The Euro can be defined as the common monetary system by which the participating members of the European Community will trade. Eleven countries Germany, France, Spain, Portugal, Ireland, Austria, the Netherlands, Belgium, Luxembourg, Finland and Italy will comprise the European Economic Monetary Union that will set a side their national currency and adopt the Euro in 2002. A new National bank, based in Frankfurt Germany, will be constructed and the interest rates that control the economies of these nations will be in the hands of this new system. It is indeed a great experiment, being masterminded in Frankfurt, one that will be felt through out Europe as well as the rest of the world.1 The combined countries, now more commonly referred to as Euroland, will fal!l under one national bank. This bank, the European Central Bank, will determine the economic fate of the entire "Union". The merging of eleven currencies is a daunting and somewhat lethal task. The ECB is comprised of seventeen members, each ha
ets may be excessively nervous because they cannot gauge the governing council's true thinking. The fourth concern of the implementation of a solitary currency in Europe is that of who is in control?4 Officially the ECB is independent and answers to no political nation. But can one council possibly have the ability to control and balance eleven different economies at the same time? Some say no, but if it can even succeed only a little bit what is good for one economy may not be good for another. This leads into the final concern: Does one economy fit all? When the economy is in the basement the first thing that politicians ask for is a cut in interest rates. In the beginning this may give the desired results but in the long run may entirely destroy an economy. It becomes macroeconomics versus microeconomics.4 What is good for the economy as a whole may not be good for every sector and region. What one can conclude by the scheme of things that the Euro is going to happen. What ! the out come will be and what effects it will have towards the economic world can only be speculated. The entire world will be watching as the largest economic experiment of our time unfolds before in front of us half way around the world. trade for gods and services will be conducted with the Euro. Companies that trade within the EMU will no longer have to worry about costly conversion rates and delays that is inherent when using different currency for business. As far as trade goes there will be no boarders. Countries that refuse to trade in the Euro may have difficulties. At some point in time they will receive payment for goods or services from an EMU country. If they are not prepared to deal with the EURO they will loose business to competitors that are prepared. Part of being prepared is having the financial software that is compatible with the Euro and opening bank accounts so they can transact with Euro currency. England has chosen not to enter the EMU. Many companies within England will not be afforded this luxury. Trading abroad using the Euro will be unavoidable, as many suppliers and business will fall under the EMU. It will be a domino effect, in order for England's business community to compete wi! exchange fees. However, when they cash these checks in Paris France exchange fees will apply An Euro check will be directly exchangeable with no exchange fees all around the eurozone.2 Other than seeing Euro figures on their statements business travels will not see much difference when traveling with the Euro. Regardless of whether travelers will be crossing the region or on their annual package vacation travel around the EMU will be different. With the introduction of the Euro major changes will take place to the international monetary system. The European Monetary Union, EMU, will create an area that will closely resemble the Untied States in terms of magnitude of its domestic economy and its degree of openness.3 Accounting for about 18% of the world gross domestic product it mirrors the United States 18% as well. The eurozone accounts for 20% of world exports against 16% for the United States and 10% for Japan.3 When imports are worked into the equation the United States ho! uro. Whether or not a business lies within the EMU running into the Euro will be inevitable as time passes. Traveling in Europe will be less of a ha
Some common words found in the essay are:
Central Bank, Monetary Union, United Japan, Euro Companies, Officially ECB, Gerard Gent, Union EMU, Traveling Europe, EMU People, Stability Growth, international currency, european economic, central bank, monetary union, european economic monetary, economic monetary union, economic monetary, exchange fees, national currency, euro international currency, political influence, european central bank, conducting business, euro happen, bank european central,
Approximate Word count = 2251
Approximate Pages = 9 (250 words per page double spaced)
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