why single currency is good for businesses

Topics: European Union, United Kingdom, Euro Pages: 2 (982 words) Published: October 28, 2014

Question 2; “All countries in the EU should join the single currency, all of them. A single currency would really allow businesses to prosper”. The European Union more commonly known as the EU, is known formally as the European Economic and Monetary Union. The EU establishes a common market among its 28 member countries which means that all border controls between members have been eliminated, allowing the free flow of goods and people. Public contracts are open to bidders from any member country. The EU common market also means that any product legally manufactured in one member state can be sold in any other member state without the effect of tariffs or duties set on the products or services. Taxes have been standardised. Practitioners of most services such as; law, medicine, tourism, banking, insurance, can operate in all member countries. There are many possible advantages and disadvantages of joining the same currency that may affect businesses such as a single currency should end currency instability in the fellow member EU states by irrevocably fixing exchange rates and reduce it outside them, this is when the exchange rates are fixed and will stay fixed so there is no fluctuations in exchange rates as it will still be worth the same in many years later. Because the Euro would have the enhanced credibility of being used in a large currency zone, it would be more stable against speculation than individual currencies are now. An end to internal currency instability and a reduction of external currency instability would enable exporters to project future markets with greater certainty. This will unleash a greater potential for growth. Another advantage could be that consumers would not have to change money when travelling and would encounter less red tape when transferring large sums of money across borders this would make it better as well as easier for businesses as the currency would be the same and there would not a problem with exchange rates which...
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