We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

The UK is a member of the European Union but has not adopted the euro as its currency. To what extent do the benefits of memb - Coursework Example

Comments (0) Cite this document
Summary
“The UK is a member of the European Union but has not adopted the euro as its currency. To what extent do the benefits of membership of a monetary union such as the Eurozone outweigh the costs”? The euro is the official currency of the Eurozone, and is used by the majority of countries within the European Union, including France, Germany and Spain…
Download full paper
GRAB THE BEST PAPER
The UK is a member of the European Union but has not adopted the euro as its currency. To what extent do the benefits of memb
Read TextPreview

Extract of sample
The UK is a member of the European Union but has not adopted the euro as its currency. To what extent do the benefits of memb

Download file to see previous pages... There are a number of reasons to join (or to not join) an international shared currency such as the euro, each of which have more influence depending on the state of the national currency. The purpose of this essay is to evaluate the reasons why the UK has not adopted the euro as its primary currency, and the benefits of joining such a monetary union. The purpose of this is to form an understanding of how a monetary union works and how it can be beneficial or detrimental to partner nations. Perhaps the most commonly cited reason for the UK to join the Euro is so that it can benefit from reduced transaction costs for businesses and consumers (Chapple, 2011). If the UK is part of such a monetary union, there will be no cost for changing currencies before completing a transaction in any country which is part of the Eurozone. Evidently, this will benefit tourists and those travelling to the Eurozone on a regular basis, as exchange rates and commission on currency exchange can be extremely high (Pettinger, 2011). The lack of currency exchange would also benefit a number of companies which trade in the Eurozone or have trade links with other firms which do. The frictional cost involved in currency exchange is high, and exchanging the pound for the euro as daily currency is estimated to save about 1% of GDP (Pettinger, 2011), a staggering amount of money. It would also help the UK to prepare for international trading if the euro gains strength as an international trading currency (Chapple, 2011). Another benefit of the euro is that it would make costs in the Eurozone more transparent. If a tourist goes to the Eurozone and buys souvenirs or other products, accurate costing requires them to translate the euro price into pounds. The benefit for businesses is that the price of a product in the Eurozone would remain fixed (as long as the price itself is fixed). This would mean that there would be no speculative decisions that need to be made about the best time to buy large amounts of product from the Eurozone dependent on current exchange rate (Chapple, 2011). Additionally, companies purchasing large amount of product from the Eurozone could provide more accurate revenue information based upon cost of product without the need to account for these fluctuations in the exchange rate – predictability would be higher. Exchange rate volatility can also mean that exporting products can become unprofitable, which has the potential to have a huge impact on GDP. Adopting the euro could also mean more inward investment for the UK. This would occur as the cost of transactions internal to the Eurozone, as outlined above (Grange, 2002). Inward investment a term used to describe the input of money from outside an economic region into another economic region, and can occur when a company moves part or all of their activity into that region (Grange, 2002). The potential for inward investment is one of the biggest benefits of adopting the euro, particularly in the UK’s current economic climate. Inward investment often leads to the creation of a number of employment opportunities within the economic region (Wikipedia, 2013), which would be hugely beneficial to the UK which is currently struggling with unemployment figures (BBC, 2013). Inward investment is also an attractive way of boosting the economic situation of an area, as it can often be more reliable than investing into small local ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“The UK is a member of the European Union but has not adopted the euro Coursework”, n.d.)
Retrieved from https://studentshare.org/macro-microeconomics/1478379-ypthe-uk-is-a-member-of-the-european-union-but-has
(The UK Is a Member of the European Union But Has Not Adopted the Euro Coursework)
https://studentshare.org/macro-microeconomics/1478379-ypthe-uk-is-a-member-of-the-european-union-but-has.
“The UK Is a Member of the European Union But Has Not Adopted the Euro Coursework”, n.d. https://studentshare.org/macro-microeconomics/1478379-ypthe-uk-is-a-member-of-the-european-union-but-has.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Exposure to Currency Risk: Definition and Measurement
Starting a new venture or moving to another country is not an easy task because the investor or the company not only has to face usual risk that a business faces but it has to deal with the exchange rate risk or translation risk (Gitman, 2003).
8 Pages(2000 words)Coursework
Reaching the youth market in Europe: Euro Teens
As humans being social animals, there is the need to discuss on the various issues and matters of interest that are essential in making life better and enjoyable. On this point of view a greater percentage of human behavior is determined by the social life in which it exist in.
10 Pages(2500 words)Coursework
EUROPEAN UNION LAW
Unfortunately, it is a widely seen that people from less developed European countries move to other wealthy nations in lookout for better prospects and end up being in distress and at loss. However, the nationals of developed nations enjoy full freedom and privileges and the people who have moved from other countries take themselves to be exploited.
5 Pages(1250 words)Coursework
To what extent did the liberalisation policies adopted by Czechoslovakian politicians cause the Prague Spring
The libralization reforms were introduced formally on January 5, 1968 with the commncement to power of the reformist leader Alexander Dubcek (Ramet, 1999). The period was very brief as it ended in the invasion of Czechoslovakia and the Warsaw pact allies under the pretext of preserving peace and continuity of Czechoslovakia (Williams, 1997).
9 Pages(2250 words)Coursework
PARLIAMENT, POLITICS AND POLICY MAKING: CHALLENGES TO WESTMINSTER: DEVOLUTION AND THE EUROPEAN UNION
The system of governance in the UK in a contemporary scenario is undergoing a process of restructuring owing to the imminent institutional and constitutional reforms (Cini 2007). The devolution of power furnished by the multi-level system of governance is a direct expression of the concept that the emerging European politico-economic system comprises of multiple, interacting authority structures (Bache & Flinders 2004).
4 Pages(1000 words)Coursework
Civil Engineering in the UK
Thus the energy and operational efficiency of the machines or equipment or even the treatment process design to meet the overall efficiency were not key areas in the planning and design of wastewater treatment plants. United kingdom have nearly 9000 sewage treatment plants with most of them still under the conventional systems of operations.
39 Pages(9750 words)Coursework
The UK is a member of the European Union but has not adopted the euro as its currency. To what extent do the benefits of membership of a monetary union such as the Eurozone outweigh the costs
Single currency usage was the primary motto introduced for the Union. All member states of the EMU use a single currency, known as Euro, within their economies.
8 Pages(2000 words)Essay
European Parliament Elections 2014
The European Parliament for the year 2014 had their elections held at the European Union as from 22 to the 25 of Mat 2014. The elections marked the eighth since the first conducted in the year 1979 that had the countries in the union filed candidates for election as president of the commission. 
6 Pages(1500 words)Coursework
Should the UK join the Euro
In the recent past, the government of United Kingdom made it clear that they were not intending to engage in Euro although views have emerged about what exactly are the implications if it happen to join and these have been drawn not only from an economical point view but
7 Pages(1750 words)Coursework
Choose any one country, assess its current macroeconomic position and discuss what policies have been adopted by the monetary and fiscal authorities in the past year. What should the monetary and fiscal authorities be doing over the next year or so
It is calculated on a quarterly basis but revised constantly to ensure all statistics provided on the country are correct. GDP is determined in three ways: the income earned, how many goods and services were sold in the fiscal period and
6 Pages(1500 words)Coursework
Let us find you another Coursework on topic The UK is a member of the European Union but has not adopted the euro as its currency. To what extent do the benefits of memb for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us