healthy but it could drive small businesses out of a competitive market.AMERICAN BUSINESS AND THE EUROFor US companies exporting to Europe, the potential benefits of this process are enormous. (Ambassador Hugo Paemen) This quote is significant because it displays the potential possibilities available for American businesses. However, there are both advantages and disadvantages for American companies doing business with the euro.Advantages for American BusinessAn article written by Peter Gwin entitled Americans in Euroland emphasizes this advantage. The price transparency is already pressuring companies to become more competitive. Easier market access is provided to the worlds largest regional economy with the establishment of a single European currency. Business transactions need to account for the activities into the new currency. To remain competitive and to profit from doing business internationally, Europe, we need to understand what the euro is and what it means to your business in maintaining and expanding sales revenue. A transparent market allows companies to benefit greater from transparency in agent/distributor commissions throughout Europe. Simplifications, compensation plans, and greater transparency in reporting revenues to national tax authorities serve global business benefit as well. U.S companies need to monitor events so they can stay afloat and keep up. Exchange rates and pricing for some corporations are going to have to quote prices in both local currencies and the euro until the crossover is complete. This will require an expansion of their accounting systems.Disadvantages for American BusinessAlthough the single currency will ultimately make it easier to do business in Europe, US companies still find many obstacles. The dollar is the worlds premier medium of illicit exchange. With time, the euro will significantly alter the international monetary and financial landscape. Europe's new money will develop...
