What are the ramifications of Euro for American business, and for the United States in general?
One major benefit for American business interests is that American companies no longer have to deal with currency risks for each of the 11 individual countries. There is no longer the chance that currency in one nation or another will be devalued. There will be only one currency to worry about. For the financial industry, the impact will be positive. Major banks, investment firms, and mutual fund companies active in Europe will have a much broader, more simplified market. Banks will save money because the need to keep costly record-keeping will be eliminated. However, multiple foreign currency exchange transactions, which are a fat source of profit with high markups, will whittle down. However, Euroland companies could see some new cost advantages. They will no longer have to hedge their local currency against another, while United States firms will still have to hedge against the Euro. Generally speaking, European companies will improve their competitive position world-wide because th
