Explain how investors can benefit from enhanced returns in the Euro zone

Question Description

Explain how investors can benefit from enhanced returns in the Euro zone. 

Final Answer

Creation of euro created many benefits and advantages previously where every member country had their currency. Euro brings closer cooperation between member states and a stable currency and economy for our benefit. The EU was founded in 1957 and its member states’ concentration was on building a common market for trading.  For the market to grow and flourish further, monetary cooperation was needed for internal market which brought job openings and prosperity for the Europeans. The Euro benefits are wide and felt on various scales, they include stable prices for clients and citizens  and more choice, extra opportunities for  business and markets and  bigger security, growth and  better economic stability, more integrity in financial markets, stronger presence for the EU in the global economy and tangible sign of a European identity. Economics stability allows the government to plan for the future and is good for member state’s economy, it also benefits businesses by reducing uncertainty and encourages organizations to invest. This, benefits citizens who have an eye on employment and better good jobs.

How do the euro benefits arise?

The single currency creates new strengths and opportunities coming from the integration and scale of the economy of the euro area, creating efficiency in the single market. Doing business in euro area is less risky and cost effective with the single currency. Ability to compare prices encourages cross border trade and all types investments, from the consumers who are searching for the lowest cost product, through business buying the best service, to the consumers who are searching for large investments and who can invest more efficiently throughout euro area without getting risks in fluctuation of exchange rates.

Benefits worldwide

The single currency brings other opportunities in the global economy.  The currency enables the euro area to be an attractive region for third countries to do business and promote trade and invest. The prudent economic management enables the euro to attract reserve currency to third countries. Careful management and scale  brings stability to the euro area, the strength and size of the euro betters ability to absorb external shocks with no job losses and slow growth.  The euro does not  stabilize economy and growth on its own.  This is gotten through the sound management of the euro area economy  under the treaty rules  and SGP (Stability and Growth Pact) and central element of EMU (Economic and Monetary Union. The euro is integral in the economic, political and social structures of the European Union of today.

emshicks (12)
University of Maryland

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