作业帮Explain the economic implications for the UK of entry into European Monetary Union.
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Explain the economic implications for the UK of entry into European Monetary Union.
Explain the economic implications for the UK of entry into European Monetary Union.
Explain the economic implications for the UK of entry into European Monetary Union.
解释加入欧洲货币联盟给英国带来的潜在经济影响.
implication一般作暗示讲,这里指潜在的东西.
或者说：
解释加入欧洲货币联盟对英国经济意味着什么.
Benefits:
1.Reduced transaction costs for firms from converting between currencies within Euro Zone .
2.Removes exchange rate risks from Forex Market volatilitly.
3. Economies of scale and...
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Benefits:
1.Reduced transaction costs for firms from converting between currencies within Euro Zone .
2.Removes exchange rate risks from Forex Market volatilitly.
3. Economies of scale and cost advantage may be gained if more trade is encouraged.
4.Greater price transparency.
5.Encourages inward investment.
6.Rendering monetary policies to European Central Bank may lead to lower long term inflation
Problems:
1.Transition cost: e.g changing price list and catalogues.
2.Loss of independence on monetary policies. e.g Interest rates would be set by European central bank.
3.Reduced freedom over fiscal policy. Prudent rules have to be followed with respect to public spending and public debt.
4.Loss of the option to adjust the exchange rate to boost international competitiveness or correct trade deficits.
5.Above average contribution has to be made to finance the EU Budget.
6.More competition pressure on City of London as a main international financial centre. e.g Frankfurt
7.Inflexibility of macroeconomics policies once trade cycle diverges from the rest of Euro Zone.
8.Trade and capital flows highly dependent on the future of Euro.
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