Examine the potential benefits to European manufactures and consumers of single European currency

The first 200 words of this essay...

Examine the potential benefits to European manufactures and consumers of single European currency

Consumers could benefit by having more choice of commodities to chose as the supply of commodities increase as firms would increase production (they would know their returns and be willing to take more risks as explained below). Thus there would be increase in choice for consumers also known as consumer sovereignty. Also as shown in the diagram below the supply of goods and services within the economy would increase this would be because as mentioned above firms would be willing to invest and thus increase in output. As supply increases the price would decrease the original price was at P1 as the supply has shifted from S1 to S2 the price of the goods would decrease to P2.

Consumers would not have to change money when traveling within the Euro zone, and would encounter less red tape when transferring large sums of money across borders. Travelers will no longer be forced to change money and pay banks the commission charges. A consumer might wish to make one large purchase or transaction across a European border such as buying a holiday home or a piece of