Should The Uk Adopted The Single Currency?

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Should the UK adopted the Single Currency
The Becoming of European Union and Adoption of Euro
The European Union as we know it is an economic union of countries which make their own policies concerning economies, societies, and law. Created in 1993, the European Union now contains 28 countries in total, and is now the biggest economic union in the world by GDP. For big countries, the creation of EU was the removal of many trade and non-tariff barriers. Trade has increased approximately 30% since 1992. For smaller countries, it was a stepping stones for economic growth and negotiation power with larger nations. Since before the creation of EU in 1993, Europe were already the world largest trading regions, but the trading were complicated by
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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.
The Advantage of adopting Euro currency The euro was originally created based on the belief that single currency will remove the trade barriers between nations, and stimulate growth among nations’ GDP. Since before the creation of euro, countries in Europe were trading with each other. However, throughout history of war and distrust, nations can feel uncomfortable trading with other, and trade barriers were placed. The Steel and Coal tariff was the first to come down after World War II. This allows countries to trade without having to pay tariff over border, but still having to suffer from exchange rate risk. Then came the creation of European Economic Community, and the euro single currency which consequentially removes both the tariff and exchange rate risk. As we know, businesses that export or import good are often exposed to risk of exchange rate fluctuation. Before the euro, the currency hedging was the best protection against these fluctuation. However,
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