EUROPEAN BUSINESS- ENLARGEMENT Essay Example | Topics and Well Written Essays - 1000 words

EUROPEAN BUSINESS- ENLARGEMENT - Essay Exampleeducation, culture and disposition), and access to banks and monetary 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 bullion 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 sparing 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 twain countries are eliminated, making transfer of resources and business transactions between them more stable.Because of greater political and economic c ertainty, it would be natural for trade volume to increase and costs of transactions to be eliminated. Also, the most in force(p) suppliers could be sourced, further reducing costs.In the 1980s, economists determined that Germanys inflation rates were well chthonian control despite its rise in other countries, because the German central bank, the Bundesbank, was independent of the German organization and thus has the duty to resist reflationary pricing policies by the g all overnment. The EMU could ensure the same condition over the common market area.The needs of one part of Europe can have a disallow 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 countrys sexual economic system with its