America and the Euro Essay

Breitfelder, M. (1998). The Euro Currency Age: Challenges and Opportunities for U.S. Businesses. Business America, 119 (7), 33.

The European Union (EU) is a unique economic and political partnership between 28 different countries. It consists of about half a billion citizens, and its combined economy represents about 20 percent of the world’s total economy (Briney, 2015). Today The European Union works as a single market, with free movement of people, goods and services from one country to another. There is a standard system of laws to be followed, and since 1999 many countries share a single currency called the Euro (Europa.eu, 2015). This essay will explore the background history of the European Union and the benefits and drawbacks of the European Union.

have to agree on one issue. There is also a financial cost of being a

Being a part of the EU and its trade agreements has been highly beneficial for a small country like Denmark. The EU is a much more attractive market to do business with rather than just Denmark, which only has a population of 5 million. On the other hand, the EU is a 500 million consumer market (5). Additionally, it is the largest single market with transparent rules and regulations, secure legal investment and are also the most open market to developing countries in the world. Denmark’s most important trading partners are Germany, Sweden and Norway from the EU, all of which are part of the Single Market. Additionally, the United States and Denmark’s trade relationship has been long and mutually beneficial. Denmark largely shares U.S. views on the positive results of NATO (though this is a political and military agreement, it has helped relations overall). Denmark’s active and liberal stance within the EU, and membership of the WTO aligns with U.S. interests along with its role in European environmental and agricultural issues (1). Copenhagen’s port on the Baltic Sea has been important for U.S. private sector dealing with the Nordic/Baltic region. Danish exports to the US are most prominently industrial machinery, chemical products,

The European Union is one of the most famous Economic blocs in our recent times. It is the culmination of efforts after the devastating Second World War. It currently includes 28 states with varied cultural and historical backgrounds and even different languages. It now has more than 30 separate international trade agreements with many countries such as Colombia and South Korea (Encyclopedia of Management).

While our relations with our neighbors and other members of the European Union could possibly improve with more trade, our relations with superpowers would likely become tense. Because large states use economic and military capabilities as means for power, they act on similar behaviors. Superpowers are suspicious to other states, and see most as threats to their own survival in the international system (Mearscheimer, 17). Great powers fear states with large populations and growing economies Some could say that because this look into state behavior focuses on superpowers amongst one another, it would not apply to a great power reacting to a smaller state like

Trade between the US and the EU leaves a ripple effect, not only through their own economies, but throughout the world economy, given that these are two of the world’s wealthiest nations. “The transatlantic economy is the largest and wealthiest market in the world, accounting for over 50 percent of world GDP in terms of value and over 40 percent in terms of purchasing power.” Years of trade between these two giants has demonstrated the mutual benefits of trade and has set the standard for both developed and developing countries. Their example shows the interdependence that different countries uphold and the efficiency that would result if all embraced this inter twine rather than fought to independently produce their own goods, encouraging

The euro is the currency that is used by these European Union countries: Belgium, Greece, Cyprus, Spain, Germany, Italy, Ireland, Malta, Austria, Luxembourg, Finland, Portugal, the Netherlands, Slovenia, and France.

The creation of the European Economic Community (EEC) also had effects on the free trade. As European countries began to discuss tariff decreases, the process was also conducted on a product by product basis with lengthy progression. However as European countries began to trade with each other, the aggregate demand for American goods dropped relative to the increase in demand for each other’s goods.

The US and EU have also both been supportive of human rights, support for the rule of law and democracy in other nations. This common ground allows the nations to form a bond that make them believe they are more partners and allies than competition. When considering all the above similarities we can also include their mutual agreements on supranational issues such as trade, aid policy and international diplomacy. This common ground is an important part of the transatlantic relationship. But with all this mentioned there are also many difference between the two as well.

In this report, we will take a closer look at Britain’s strategy to not adopt the euro currency, and the possibility of adopting the euro in the future. To do that, we must first make a better understanding of the benefit of using the single euro currency.

After the long awaited single currency implementation known as the euro, there have been many ups and downs to this monetary system. Many have been quick to criticize while others still praise its value claiming it will soon be valued strongly against the dollar. Our paper looks into the various aspects of the euro and the progress it has made since its initiation. We begin with a brief history of the euro then move on by raising some questions concerning the effects of the euro on various economic aspects such as competition and global financial institutions. We then provide insight to the various strengths and weaknesses of the euro and the implications this currency has on various institutions such as banks.

In 1999 seventeen countries in the European Union adopted the Euro forming a Euro Area. With the adoption of the Euro these seventeen countries discontinued their old currencies and monetary policies. Monetary Policies

The European Union (EU) was established in order to prevent the horrors of modern warfare, experienced by most of Europe during the World Wars of the 20th century, from ever ensuing again, by aiming to create an environment of trust with the countries of Europe cooperating in areas such as commerce, research and trade (Adams, 2001). The EU has evolved into an economic, trade, political and monetary alliance between twenty-eight European Member States. While not all Member States are in monetary union (i.e. share the currency of the euro), those that are form the ‘Euro-zone’ (Dinan, 2006). The EU can pass a number of types of legislation, with a regulation, act, or law, being the most powerful. Its ‘tricameral’ (European Union, 2007)

The European Union and Russia have a strong trade relationship. Bilateral trade and investments continue to grow rapidly.