Issues Of International Political Economy

1626 WordsApr 25, 20177 Pages
Issues in international political economy Explain the advantages and disadvantages of a single currency with regard to the case of the euro and the euro zone countries. Has the euro and its governance brought about economic stability and growth to all the euro zone countries equally? One of the most substantial evidence of European integration is the euro, which is the most widespread currency in 19 out of 28 European countries. Euro is used by 338.6 million people every day. The advantage of the familiar currency is instantly evident to anyone travelling in a foreign country or shopping online on websites based in an additional EU country. The euro zone is formally called the euro area, which is the geographic and economic section that…show more content…
• Eradication of the expenses of converting currencies: for every personality and the organisation there is certain amount of charge to be paid while converting between the currencies. A single currency will help in elimination of such expenses. • Improved competition and effectiveness: since the better clearness in prices can be observed in the greater competition, the single currency should promote such competition which helps in increasing the effectiveness of an organisation because the organizations are forced to continue and be ready for action. • Increased Price Transparency: it is not easy to evaluate the prices in different currencies. It is not possible to carry a calculator every time to verify the price of something in foreign country. The price evaluation is clear-cut if the whole thing is in the same currency. The clearness in price may help the organizations cut costs, as they will be capable to find the cheapest item for consumption more effortlessly and efficiently. • Eradication of exchange rate uncertainty: due to the fluctuations in the exchange rate we never know which way the exchange rate moves, therefore it might be one of the problems while trading with other countries. The exchange rate can move in our favor and at the same time it may also not be in our favor, this kind of insecurity can hamper trade especially for the small business
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