Thursday, May 31, 2012

Portfolio Task 6


The idea of a single unified global currency is an impressive and remarkable action. There is no doubt that trade and travel would be easier. In spite of that I think that it may cause various problems today.
          There are many advantages of having single currency such as the Euro in Europe. Whenever we travel between various Europe countries, the problems of changing and exchanging rates are history. For instance and from business perspectives, it's easier to use a single currency in different transactions to avoid any conflicts and risks that use of the US dollar is similar; even most countries accept the US dollars in many aspects either in tourism or in trade transactions.
          However there are many problems in having a global universal currency. First of all, from an economic perspective it's not easy to accept this idea most developed countries face some political, legal and economical inflation. Such countries could not easily be brought into the single currency because of some restrictions in fiscal and monetary governmental policies.
          Overall, I believe that the idea of a universal currency has a reverse flow. It may be effective in trade transactions and tourist purposes but it may raise various problems and conflicts between countries.

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