

America And The Euro Essay

4223 words - 17 pages

America and the Euro

America’s relationship with Europe has long been the cornerstone of our economic and foreign policy. Today, America’s fortunes remain fundamentally linked with Europe’s. Needless to say, we have a security interest in what happens in Europe, but we also have a vital economic stake. Together, the United States and the EU produce close to half of all goods and services in the world and account for over half of all world trade. While we put great attention on emerging markets throughout the world, one cannot overstate the importance of our commercial relationship. The EU is by far our largest commercial partner. The annual value of U.S. and EU trade exceeds $250 billion. Europe is twice as large a market for American companies as Canada and Japan combined. The U.S. and the EU are also the largest investors in each other’s markets. Europe is also the United States most important partner in supporting the global trading system.

The launch of the Economic and Monetary Union (EMU) is part of a broader process of enlarging and deepening the European union. EU leaders view the EMU as the next historic step in a long process of European integration and essential to ensuring a global role for Europe in the future. This drive toward a unified European currency has long been on the minds of Europeans, ever since a European commission conceived it in 1957.

Economic strength, stability, and vitality in Europe is in the United States national interests. A strong European economy will benefit U.S. exports and American economic interests in general. Though business will have to deal with certain transitions and changes attendant to the adoption of a single currency. The U.S. has a strong interest in Europe’s future growth and prosperity. Our interest lies in seeing the development of a robust and healthy European economy that is open to world markets. President of the European Commission Romano Prodi strengthens the value of the U.S.-EU relationship by stating, “The political and economic ties between Europe and the United States have been strengthened by over 40 years of close cooperation toward common goals.” For a visual understanding on the United States and the European Unions relationship refer to appendix A, US-EU trade in goods, appendix B, US-EU trade in services, and appendix C, US-EU investment.

Our analysis will include the history leading to the emergence of the European Economic Community and the European Union. Given the foundational background, we can then move into the topic at hand, the euro. Analysis on the euro will include the changeover stages, leading into the heart of the research, the advantages and disadvantages for both U.S. business and European businesses dealing with the single currency. Lastly a comparison between the euro and the dollar will wrap-up the research.



To first understand the Euro, you must understand the...

Find Another Essay On America and the Euro

The Adoption of the Euro Case: Sweden and England

2525 words - 11 pages Europe consists of several sovereign countries which use their own currency prior to the creation of the European Union in 1993. The EU has been built through several binding treaties and laws that harmonize European states when it comes to political issues and economic issues. It was until the Maastricht Treaty of 1999 that established a single currency known as the euro. The euro’s purpose is to have a single currency in Europe, similar to a

Describe your beliefs about the Euro, both positive and negative

1247 words - 5 pages Euro. We need to change.Every time that someone in Politics seems to mention the topic of the Euro, all the controversial arguments begin. Some people believe that we should never change to the single currency, others think we should wait. However, other people think that changing to the Euro will be beneficial to all and that the issue should be addressed. I am one of those people. It is my firm belief that the UK should join the Euro

Euro Disney - Analysis of the External and Internal Environment

1386 words - 6 pages Euro Disney’ marketer’s before entering a market as in this case has been the European market should have scanned the environment. By scanning the environment they should analyze the mega-environment as well as the task environment for possible opportunities and threats. Yet, a close attention could have been paid to their strength and weaknesses inside the company. Indeed, the consideration about any trends should have been incorporated in

Relax and Transform in the Euro-Med Spa

915 words - 4 pages Euro-Med Spa is a private business that offers a variety of med-esthetic services from relaxing facials to GPS Lipo sculpting. This facility advertises its services by using advertisements in different magazines that can easily be found in the mailbox. After looking at the ad, consumers can see that the tactics used by this company are intended to highlight the modern society’s obsession with weight loss and body image. The purpose of the ad is

The impact of the Euro on financial markets and their participants


Outline Of The Euro And Its Effect On Germany (Outline Only)

650 words - 3 pages The EUROTable of Contents*What is the Euro*How the Euro relates to Germany*Germany's Old Currency*What other countries use the Euro*What notes and coins the Euro uses*Conversion Rates*The Euros effect on the world*Fun FactsWhat is the Euro*The Euro is one currency for Europe*It is the currency for the European Union*It is the legal tender in all the participating states*It is comparable to the US dollarHow the Euro Relates to Germany*Germany is

America and the Holocaust

1594 words - 7 pages America and the Holocaust With the liberation of the concentration camps at the end of WWII, the issue at hand was what to do with the Jewish peoples with no place to go. In the month of March 1933, one of the first camps, Dachau, was opened. Dachau was a concentration camp, or a prison camp maintained by the Third Reich, [the name for Germany when the government was controlled by Adolf Hitler]. Aside these concentration camps was two other

The possible effects of the UK entry into the Euro on foreign trade and foreign direct investment in the country

1491 words - 6 pages America business*Source from The EURO. Should Britain Join? Yes or No. - Browne, A (2001), Icon Bookscycles. Therefore all the trade that is priced in dollars will suffer as UK locks itself to the Euro, which is so volatile against the dollar. *A study has shown that taking the value of imports and exports together, well over 50% of UK trade is now with other members of the EU, with the rest of its trade divided more or less equally between the

A brief description of the pros and cons of joining the Euro, and the problems that may be faced by the UK in the future

659 words - 3 pages There are several arguments as to why the UK should adopt the euro but there are also several arguments as to why we shouldn't. Some people argue that jobs are being lost because of the decision to remain with the pound for the time being. Companies such as Matsushita, Hitachi, Canon and Sony have all cut jobs or moved production to other parts of the world because of the high rate of sterling against the euro. This means that the UK is less

Culture of America and The British Islands

5458 words - 22 pages :-Britain as a bridge to EuropeBases: common language, cultural traditions, history, military partnership, good personal friendship between some UK ministers and US Presidents9.Why is Britain called a 'reluctant member' of the UE?-staying out of the euro-out of the Schengen Agreement-British Eurosceptic press-general opposition to greater political integration-objection to its contribution to the UE budget-Thatcher's Bruges Speech of 1988-the

America and The First World War

498 words - 2 pages way to evade a repetition of such a disaster was to create an international body whose sole purpose was to maintain world peace and which would sort out international disputes as and when they occurred. This would be the task of the League of Nations. America was forced to enter WWI; the main goal thereafter was to prevent another such war from occurring in America.

Similar Essays

The Euro And The Gold Standard Compared

2884 words - 12 pages Introduction This paper will analyse the monetary contradistinctions of the fixed exchange rate regimes of the classical gold standard (1870s - 1914) and the Economic and Monetary Union of the European Union. In relation to each other country within the currency union, the EMU is to a degree homologous to the classical gold standard. I see not the similarity in the nature of the unit of account (as the euro is fiat, as opposed to gold), but in

The Euro And Its Impact On The U.S. Economy

1293 words - 5 pages strong and stable Europe, with open markets and healthy growth, is good for America and for the world." Most obviously the benefits would come after all of the costs to implement the euro have diminished. The trend of the globalization of American businesses further supports the costs savings involved in doing business internationally. Well-known companies, like IBM, McDonald's, and Coca-Cola generate more than fifty percent of their revenue overseas

Europe And The Uk: Adopting The Euro As A Currency

1104 words - 5 pages German-level interest rates. Browne specifically accentuates how much is the British economy out-of-step with that of continental Europe also moderately because it has much stronger economic ties to North America. He points out that more than half of the UK’s trade ensues outside the Euro zone and is steered in dollars. In mainland Europe the opposite is true - the economies are strongly integrated with one another. Additionally, two thirds of

The European Economic Community And The Euro Dollar

3502 words - 14 pages century. The Economic reasons for the euro project can be found in the relatively poor performance of the European economies over the last twenty years or more. Europe has, for a long time, suffered form relatively weak economic growth. "Economic growth that trailed behind that in North America and Asia: productivity gains were weak; unemployment remained persistently high; and many European countries suffered form persistently high wage and