i really need help for this question…
please can anyone tell me what effects might the present rise in the value of the euro relative to other currencies such as Sterling and the US dollar have on the Eurozone members and their non-Euro trading partners?
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August 28th, 2008 at 6:55 am
It has shifted the balance of tourism toward countries like the US and away from Union member countries. International travel is one of the largest exports for the United States, ranking ahead of agricultural goods. Purchases of services and goods by foreign travelers, including expenditures for food, lodging, recreations, and gifts while in the U.S. are counted as U.S. exports.
August 28th, 2008 at 6:55 am
Europe will not be able to export as much as before, because exports cost more than before. Europe will import more because foreign goods will now be cheaper.
Speculators and investors will find the Euro to be a more attractive currency to hold because people earn a higher rate of return on their savings by holding on to the Euro.