The implementation of the euro, as a means of World trade, has been predicted to have numerous advantages, as well as disadvantages, to the economy. The way business is conducted, the way people travel, and the way countries and corporations invest their money will forever change. Although change is a certainty, it is unclear how the euro will affect businesses over time. Over the past few years, forecasts have been made predicting the possible positive effects of the euro, as well as the possible negative effects of the euro.This paper will summarize the predictions of the euros impact on U.S. Economy, as well as the current position of the euro in U.S. businesses.For businesses, the implementation of the euro is likely to have a positive long-term impact. Though the euro is a fairly new medium of exchange, American companies are used to having a close association with Europe. By removing currency conversion and the fees accumulated during trade, costs will be considerably lowered, thus allowing large businesses to save money and increase earnings. Smaller companies would also have greater chances for international trade. Competition will also increase, due to the existence of price transparency throughout Euroland. This clearness allows consumers to easily compare prices in different countries, making it complicated for companies to preserve high price differences across borders. Furthermore, efficiency gains are expected to add a half-percent to the growth rate of Europe's economy, widening the potential market for U.S. companies (Selinger). Finally, combined power under a mutual policy could make the European Union the next superpower, or at least world leadership force similar to the U.S. While this means a decrease of power for the United States, it also means shared economic supremacy. The United States would not have to do as much for the economy (especially as a source of assistance). The U.S. would no longer have to carry ...
