European Single Currency.

Authors Avatar

Economics Coursework On The Single Currency        Summer 2000

Economics Coursework

European Single Currency

By Sheryar Majid

Contents  Page

Page 1                        Cover

Page 2                        Contents

Page 3                         Introduction

Page 4                        Aim, Method (Page1)

 

Page 5                        Method (Page2)

Page 6 and 7                Hypothesis

Page 8 and 9                Pros and Cons of the Euro for Vodafone UK

Page 10 and 11                 What will the affects of Britain joining the euro be on Vodafone UK?

Page 12                         Questionnaire                 

Page 13 and 14                 EMU theory

Page 15                        Conclusion

Page 16                        Evaluation

Page 17                        Bibliography

How the single monetary system and the Euro will affect UK businesses and Vodafone UK in particular:

The Euro is the new single currency for Europe. This currency came into affect on 1 January 1999, from the fixing of conversion rates of eleven national currencies. These eleven countries will replace their national currencies with the Euro. A single currency will therefore need a single Bank, hence the ECB, the European Central Bank. The ECB located in Germany has the responsibility for providing and managing the Euro and take decisions on the level of interest rates.                                            All together there will be 11 countries joining the Euro from a possible 15, the four nations not joining will be the UK, Sweden, Denmark and Greece. These countries have each claimed that they want to wait until economic conditions are right before joining the Euro. However the countries joining the Euro will be Germany, France, Italy, Spain, The Netherlands, Republic of Ireland, Finland, Austria, Belgium, Portugal and Luxemburg.

Even though Britain may not have joined the Euro they are still eligible to join but that wont happen until at least 2004, but one thing is for certain join or not join the Euro will still affect us all, especially businesses in the UK.                                                                                          

The company I am investigating the affect of Britain joining the EMU are Vodafone Airtouch PLC, I contacted their company in the UK Vodafone UK to ask them the affects of the Euro on their business, Vodafone Airtouch PLC is in business in 8 of the 11 countries joining the Euro and it has set up groups to assess the impact on trading in the Euro, they are also assessing how the euro will affect the 3 further countries which were in the EU but not joining the Euro.    

Euro Facts

  • Euroland: The eurozone, or Euroland as its called, is huge. Its 11 members are Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg, Netherlands, Spain and Portugal and it has a population of 290 million inhabitants.
  • European Central Bank: The European Central Bank (ECB) sets monetary policy for all EU countries that have introduced the single currency.

Aim

To find out if and how Vodafone UK will be affected by the EMU and in particular how Britain not joining the EMU will affect Vodafone UK. I will conduct a detailed research of the impact of the Euro on the UK and mainland Europe (Euroland). I will use this information to analyse the affects of the Euro on Vodafone UK who are currently the biggest mobile communications company in the UK.

Method

I will carry out questionnaires and surveys to find out the affects of EMU on Vodafone UK. I will give a questionnaire to Vodafone UK asking them what their views are on joining the Euro. I will look at the affects of the Euro on Vodafone with regards to exchange rate mechanism and price transparency. I will also give out questionnaires to other communications companies in the UK and around Europe to see their views on the Euro and if it depends on what country they are in. I will also question the general public to have their views on the Euro, I will analyse these results and see how different people view the Euro (as a threat or not) and especially how Vodafone UK view the Euro and how their colleagues, Vodafone in Euroland Countries view the Euro.

Join now!

I will also write letters/emails to the people in the retail industry of mobile communications, and ask them how the EMU will affect them and their dealings and retailing of Vodafone UK. The EMU should however not affect the much because of the industry they are dealing in; mobile communications because it is a invisible good and cannot be exported or imported (i.e. a French person in France cannot buy a Vodafone mobile phone, because it would not operate in his country)

Primary Research

For primary research I did things such as:

  • I emailed many letters to people including ...

This is a preview of the whole essay