It makes it easier for investors to keep record of what they buy and sell and makes companies be more globally competitive. Also, companies that make expensive products will know exactly how much they are selling the product for, and will not have the conversion problems within Europe. Since they do not have to worry about converting money for each European country's currency, bookkeeping will be easier, therefore cheaper. Also, a lot of companies will want to do mergers and joint ventures, thus making a more united and stronger Europe (Fiarlamb, 2001).
Consumer behavior is also going to change. People do not have to be changing currencies when they travel in Europe, and countries will have to compete more prices wise, especially in the border areas. Since September 11, people are traveling less and therefore telecommunications are increasing sales due to the frequent use of text messages on the cell phones and the use of e-mails (Fairlamb, 2001).
But on the other hand, workers will be able to see the differences between prices and wages and especially will be able to compare their wages with the wages of other countries (Fairlamb, 2001).
It is a big and costly project. A lot of money had to be printed and all the old currencies had to be recycled. Every store had to reprised every single product and money machines like parking meters, ATMs, and vending machines had to be reprogrammed. .
A single currency is going to help Europe's commerce in general. Every country will have competent prices, wages and taxes. The hope it that once all the work is done and the Euro is settled in Europe, the economy of the euro zone will improve. .
3.
Effects on Businesses in the US.
The introduction of the euro is not only going to make changes in Europe, but is also going to affect businesses all around the world, especially American businesses. .
The euro will make direct marketing for US companies easier, because they do not have to worry about multiple currencies, like it used to be.