INTRODUCTION
This question explores the pros and cons of having a single currency in the UK. Advantages and disadvantages will be illustrated to give a balanced view. Perspectives from individuals, companies and the macro-environment will also be covered to give a holistic argument.
ANALYSIS
Pros
- Stability: Analysts argued that the biggest advantage of joining the Euro is that the UK exchange rate will enjoy greater stability against the other EU members. Over half of UK exports and imports come from trade with the EU. The stability for these exporters will enable them to plan more easily and investment is likely to rise. It will also encourage further trade between these countries, which should lead to further economies of scale.
- Lower
…show more content…
For instance, individuals would not pay transaction costs of changing currencies when travelling abroad. The transaction cost advantage for businesses are bigger, as it includes the costs of hedging against huge currency swings. Some economists believe that the UK will attract more foreign direct investment (FDI) if the UK becomes part of the Euro.
- Increased intra-EMU competition: As mentioned in the point previously, intra EMU trade is beneficial for the introduction of single currency. Price transparency due to a single currency will make price comparison across countries easier so consumers can buy in the cheapest markets. It may force higher cost firms to reduce their prices. The success of this is also dependent on action by the EU competition
…show more content…
For the UK, this may be due to the structure of the economy e.g. Britain has more non-EU trade, more home loans made at variable interest rates than its partners, and is the only oil exporter. Economic convergence - which is a condition of entry to the EMU - means that all economies would grow and shrink together on the same economic cycle. However, as not all economies are moving in the same direction, this will not be a suitable practice for the UK.
- Loss of power to choose a different short term inflation/unemployment trade off: In the long run there is no trade off between inflation and unemployment. In the short run governments can choose an interest rate which reduces inflation slowly, giving time for the unemployed to find jobs i.e. trading off on the short run. Countries that join the single currency will lose the ability to make different choices between inflation and unemployment in the short
The benefits of the European Union outweigh the costs. Ever since the end of World War II, countries in the EU have been helped economically, politically, and culturally.
With a GDP of 18.3 trillion US dollars for the EU, that is, a quantity of money and about one trillion dollars higher than the US! (Document A)! According to Document A, the European Union's highest GDP is 3.9 trillion and Germany in the lead! Germany had essentially joined the EU because for more money. There are a lot of benefits of joining the EU, maybe just to have a lot of money, or be a more powerful strong country and not to be a hovel.
In conclusion, the European Union has “merged” the countries of Europe. It has developed a common currency called the Euro’s, and a Parliament located in Belgium, Luxembourg, and France. Also, ALL of the countries of the Union are affected when one country is affected. This is important because the continent of Europe had become very weak after the wars and they needed to strengthen, and the European Union keeps the countries of Europe strong and economically fit.
In conclusion, the benefits of the UK’s membership in the EU outweigh the costs. The most significant benefit is the access they have to the single market as this has managed to benefit quite Access to single market is aiding this inward investment
The Federal Reserve (Fed) creates and manages some of the most important economics policies in the world. Its current chairman, Janet Yellen is considered one of the most powerful people in the world because of the decisions she over sees. One of the biggest decisions that Federal Reserve has to make is what to do with the short-term interest rate. To comprehend that question one must look in to the two factors that go in that decision. Those to factors are referred to as the dual mandate. So what exactly does the dual mandate entail of?
Well according to the Institute of Economic Affairs, if the United Kingdom leave the European Union the economy would not be affected as the Government can negotiate a way to keep some freedoms in place like movement of goods. The Institute also claim that Britain is one of the least regulated economy in Europe as a result business would still locate their company to Britain as it is easy to operate in Britain compare to the rest of Europe and also because of the trade surplus it has with other countries in the Union, the economy would not suffer any damages (Pycock 10-16).The economy of the United Kingdom is in a better position if it leaves the EU, and According to the Telegraph " The United Kingdom will be the second most successful economy in the world"(Holehouse). According to the two sources Britain could actually benefit leaving the European Union as it would be free to trade with other major countries like China, India, and Brazil. As a result the United Kingdom could position itself as a premier destination to invest and start operation in and also a stepping stone to the European market. But the according to the the Centre of European reform, the economy will suffer if the UK leave the Union as there are about 4-6 million jobs that are directly related to the Union (Springford. et.al 28). The Government cannot afford to lose that many jobs because that mean the Government would lose millions in tax money as a lot companies would move to other countries. Because the United Kingdom is typically chosen to be the first country as their starting base if they want to do business with the EU. The two claims contradict heavily as the IEA base their report that the UK can use its economic size as leverage, While CER 's claim that the UK location and also it
Title I is funding for elementary and secondary schools in the legislation that was passed by Congress on April 9, 1965 (Phyllis McClure, Center of American Progress). Furthermore, this title is to ensure that disadvantaged children in middle to low class neighborhoods have a fair and equal opportunity to receive a high-quality education like other individuals in other districts. Moreover, Title 1 was also to help students reach at least a minimum score of proficiency on state standardized tests (U.S Department of Education). Also, the California Supreme Court in 1971 created the Pupil system to equalize the funding throughout the school districts throughout the state. (Margaret Weston, PPIC Publication). Title 1 funds are still used today in public schools.
A buyer brings along with him snacks that he would like to purchase in a dollar store: chocolate chip cookies, a Pepsi, gummy bears, and a bag of chips. He waits in line, eager to consume this huge delight. It is his turn, and he hurriedly placed his treats on the counter, waiting anxiously to pay immediately. The cashier replies to him, “The price will be $5.99, sir.” The buyer takes out five one-dollar bills and four quarters. Not an instance did he ever use a penny in this case, which he thought was useless and meaningless. As you can see, the penny has become quite worthless and diminished in purpose. Many citizens would prefer to round up and pay rather than spend time and look in their
But this all changed in June 2017, when UK voted 52% yes at the referendum to leave the European Union until 2019. Thus, creating the expression BREXIT that stands for Britain joined with exit. Since the result of the referendum, the country is facing a big drop on the sterling value. However, consumerism had its positive impact. According to The Guardian (2016:online) ‘the
Cryptocurrencies are much confused mostly especially with their features. They are software-based currencies that are computerized using specific software. Bitcoin for example, is built and mined from the ground like gold and made to be decentralized as well as anonymous feature. All the users are legible to access the software as they are all open and made public for any user to access. This mean s that the cryptocurrency operators have allowed all users the freedom to perform any activity on the websites that deal with cryptocurrencies.
It has been found that the company should target the market aged 18 to 44, married, living in urban China, and purchasing for personal use. In order to address and leverage the current internal and external situation, the recommended marketing communications objectives have been set as follows:
In 1995 Austria joined the European Union (EU), and in 1999 they joined the European Monetary Union. The use of a common currency the “Euro” has facilitated trade and promoted economic stability for U.S. companies to manage pricing, balance accounts, and move products into Austria and throughout the EU member nations (“globaledge”, 2003). An unfavorable exchange rate for U.S. exporters turned positive in 2003 making the U.S. able to compete on more favorable terms in the near future.
As a result of those huge economic and social issues resulting from Eurozone crisis, finding a solution to the currency problem become an urgent as well as a crucial task of the member countries. In order to fix this problem, there were many different proposals submitted by all parties concerned. Policy implementations taken by the European Central Bank have had some powerful impacts on the economy of the union, and therefore the idea concerning a separation within the union has almost disappeared. However, to be able to find an effective and permanent solution it is needed to focus on long term fiscal and monetary policies.[1]
The first reason is the issue of euro. Considering a strong correlation between money and collective national identity, money can be used as an effective tool in facilitating the integration of diverse identities (Risse, 2003). Actually, the principal goal of the issues of euro is to promote the unification of the monetary system and foster integration of the economy in order to ease economic activities betwee...
The main arguments to leave are to control immigration, reject the excessive bureaucracy (and associated cost) of Brussels and to lower prices for goods and services in the United Kingdom. I will focus on the economic argument to leave: leaving the European Union will save money by lowering prices and abstaining from "membership fees."