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education, culture and disposition), and access to banks and financial institutions.
Costs of buying and selling currencies (that is, the service charges of financial institutions in providing foreign currencies to a business) is eliminated in a common market, because only one currency is used.
The distorting effects of exchange rate differences are eliminated in a single market. The single currency makes trading easier, since the value of the product in a unified currency is easy to assess.
When a firm invest in other countries, it becomes wary that there may be a sudden economic shock that would cause unexpected changes in the exchange rate. This is eliminated in a single-currency market.
Since there is political unity in EMU, the chances of war and interruption of relations between any two countries are eliminated, making transfer of resources and business transactions between them more stable.
Because of greater political and economic certainty, it would be natural for trade volume to increase and costs of transactions to be eliminated. Also, the most efficient suppliers could be sourced, further reducing costs.
In the 1980s, economists determined that Germany’s inflation rates were well under control despite its rise in other countries, because the German central bank, the Bundesbank, was independent of the German Government and thus has the duty to resist reflationary pricing policies by the government. The EMU could ensure the same condition over the common market area.
The needs of one part of Europe can have a negative impact on the rest of Europe. This was highlighted in the early 1990s, when the Germans struggled with the economic consequences of German reunification, introducing some instability into the system.
In the case of Poland, it appears that there will be increasing stability in the country’s internal economic system with its
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It tries to answer possible questions from populations during the confirmation process of new members. Why is the European Union extending membership? How will the enlargement impact on the daily lives of citizens? Are the pros and cons expressed in enlargement well founded?
Federal approach to government enhances the unity amongst the provinces. It provides a way to communicate nationalism more strongly than the autonomous units operating in complete isolation. True union in terms of federal approach can be described by a hypothetical name termed by writers and researchers as United States of Europe (USE).
Other Member States of EU 13 2.4 Conclusion 14 References 15 Part 1: Impact of Current Global Economic Situation on Nissan’s Trade and Investment between Member States 1.1 Introduction The recent economic downturn instigated from a particular region but created a strong and long-lasting impact on the global economy comprising the developed as well as developing countries.
The statement "There is little persuasive evidence that membership of the EU has been beneficial to Britain over the past 30 years" is 100 percent false. The main purpose of formation of the European Union is to create a single market economy. In comparison, the each European Union member state which includes the United Kingdom is likened to each state which includes California.
Marain (2003:2) during policy analysis of EU enlargement found that the countries becoming the member states are entitled to have numerous benefits which includes removal of barriers from trade, investment and movement of labor, exchange of technological ideas, improvement in competition with foreign markets, corporate accountability, improved CEEC's as a destination of foreign investment, cheaper consumer goods, etc.1 But it had some drawbacks as well.
Besides, the 2010th may be a timeline for further enlargement as Ukraine, Turkey and former Yugoslavia republics (Serbia and Montenegro, Macedonia and Bosnia and Herzegovina) are also standing in queue (Archick, 2005).
Historically, each stage if EU enlargement used to cause the "displacement of powers" on the continent.
As part of the enlargement process for the now 25-member European Union, its membership is expected to expand to 30 or 35 by 2020, with the western Balkan countries as the final joiners (Batora, 2007). The idea may be hinged on the dictum that there is strength in numbers. This actually gives expression to the founding philosophy of EU.
As the paper discusses the Union decided to go for a monetary and economic union in 1992 that included the use of a single currency in Europe. The move however took ten years to become a reality and in 2002 national currencies were replaced by euro notes. The Union has established itself as a pace setter.