Is europe an optimum currency area, International Economics

Assignment Help:

Q. Is Europe an optimum currency area?

Answer: Yes the area's economy is strongly integrated with its own: most EU members export as of 10 to 20 percent of their output to other EU members. However still, the law of one price doesn't apply to many products such as the auto market. In 1998 prices for the BMW 520i diverse by as much as 29.5 percent among the United Kingdom and the Netherlands. Prices for the Ford Fiesta diverse as much as 43.5 percent among the United Kingdom and Portugal!

The text is more crucial, "The extent of intra-European trade isn't large enough however to give us an overwhelming reason for believing the European Union itself is an optimum currency area." As well the text cites the reality that may be price convergence has more to do with Internet marketing than optimum currency area. The book bring to a close that on balance it seems doubtful that the 1992 measures have yet pushed Europe dramatically closer to being an optimum currency area.


Related Discussions:- Is europe an optimum currency area

What illustrate argentinas regress from riches to rags, Q. Illustrate why ...

Q. Illustrate why Argentina, one of the world's richest countries at the begning of the twentieth century, has become progressively poorer relative to the industrial countries. [

Globalization, Globalization The procedure of interlinking financial ma...

Globalization The procedure of interlinking financial markets in various countries into a common, world pool of funds to be accessed by both between borrowers  and lenders. It

Benefits enjoyed by indian companies, "1. Describe the important benefits e...

"1. Describe the important benefits enjoyed by Indian companies through TRIPs. Elaborate the main objectives of WTO in global economy. 2. "Leontiff paradox is proved in the Indian

Substantial current account deficit, Q. What are the reasons for the world ...

Q. What are the reasons for the world as a whole running a substantial current account deficit? Answer: This deficit improved sharply in the early 1980s and has remained high.

Why are prices of factors of production not equalized, Q. Why are prices o...

Q. Why are prices of factors of production not equalized? Answer: Again this statement may not or may be argued to be true. On the other hand, the growth and large volume in

Economics, describe the U.S role in the world economy

describe the U.S role in the world economy

Firms compete only through diversifying their prices, It is often argued th...

It is often argued that firms compete only through diversifying their prices. Do you agree with this view? Justify your answer using examples / case studies form the Greek and/or t

International trade commission proceedings, Q. It can be demonstrated that...

Q. It can be demonstrated that any protectionist policy, which effectively shifts real resources to import competing sector or industry, will harm export industries or sectors. T

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd