AN EVALUATION OF THE IMPACT OF A COMMON EUROPEAN CURRENCY (EURO) ON INTERNATIONAL BUSINESS.
AN EVALUATION OF THE IMPACT OF A COMMON EUROPEAN CURRENCY (EURO) ON INTERNATIONAL BUSINESS.
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Date
1999-11
Authors
ABDULMALIK, IBRAHIM ADElZA
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Abstract
In an attempt to evaluate the impact of the common European Currency
(Euro) recently launched by 11 out of the 15 members of the European Union
(EU) vis-a-vis how the U.S dollar's dominance is being challenged by the Euro in
international business, certain fundamental issues need to be analysed,
In this light, efforts have been made to touch on such topical issues as: an
overview of the pattern of international business prior to the launching of the
Euro; how and why the Euro came into being; events leading lo the birth of the
Euro; conditions necessary for the success of the Euro and finally the
implications and possible impact of the Euro on European member nations,
African economy and international business as a whole.
However, there are structural changes taking place in Europe's financial
markets as a result of the Economic and Monetary Union (EMU) and other
developments having significant impact on international portfolio adjustments and
capital flows. To this extent the Euro is perceived as a stable store of value and
assuming an important role as a global reserve currency.
Willi the integration roles a single market of 290 million people with
monetary soundness, fiscal rectitude and appropriate structural reforms, will pave
way lor a prosperous Europe. But it will succeed if the Euro is embodied in the
bahaviour of business leaders, entrepreneurs, consumers and, above all the
entire European citizenry. The success of the Euro is a necessity not only let
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1 Tlime Magazine - (January, 1999. PBut also for the rest of the world, which must be able to count on
European growth and prosperity if the global economy is to proper.
Finally, we found out in this study that the Euro has a great impact on
Europe considering employment creations, foreign exchange risks, stronger
coordination of labour and financial markets, education and training, welfare and
safety needs and political integration.
in Africa, the CFA zones whose currencies are tied to the French franc are
also expected to benefit more from the success of the Euro.
International business pattern is changing with the impending dominance
of the Euro and also witnessing the arrival of another big market in Europe.
Description
A PROJECT SUBMITTED TO THE DEPARTMENT OF
BUSINESS ADMINISTRATION, AHMADU BELLO UNIVERSITY,
ZARIA IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR
THE AWARD OF MASTER OF BUSINESS ADMINISTRATION
(MBA).
DEPARTMENT OF BUSINESS ADMINISTRATION,
FACULTY OF ADMINISTRATION,
AHMADU BELLO UNIVERSITY,
ZARIA.
NOVEMBER, 1999
Keywords
EVALUATION,, IMPACT,, COMMON EUROPEAN CURRENCY,, INTERNATIONAL BUSINESS.