The evolution of the Euro begins back in 1946 when Winston Churchill, then England's Prime Minister, and several other European leaders envisioned a United States of Europe. This vision eventually resulted in the formation of the 15-nation European Union (EU), which eventually la

d, the fluctuations through July 1999 have not been so wide as to make it necessary to panic. According to readings, excluding radical economic occurrences, which could benefit or cost an exporter, in the course of time, losses and gains on exchange rates are expected to practically cancel each other out. Some authors speculate the overall cost of doing business in Europe, such as investing in forward cover, paying expensive banking fees, etc. could drop by 5 percent to 15 percent.

The numerous reasons for U.S. firms not to enter the European trade (disadvantages) consist of the following. “Labeling requirements are exigent, it may be necessary to include as many as eight currencies on each item's price tag” (Johnson pg.21)). “Prices must be listed by unit and by weight or volume, and sale items must show the original price”(Johnson pg.21). Exporters of branded apparel face the risk that goods may be diverted to inappropriate channels or sold at unauthorized prices by unscrupulous distributors and retailers. The EMU is not a single market. Each nation must be treated individually for sales and marketing purposes. The EMU's population of 290 million is shrinking and aging. Major consumers are of middle age. “Gross domestic product (GDP) figures have been slowing among European nations, in part because of the war in Yugoslavia, and the instability or collapse of markets in Asia, Brazil and Russia”(McKenzie pg.108).

As for the advantages, cost and risks of doing business in European Monetary Union (EMU) countries are greatly reduced by the Euro, as banks and businesses move toward dealing in one currency instead of many different currencies. This cost reduction opens both importing and exporting opportunities. Under the Schengen Treaty (previously mentioned), goods can move easily across borders of European countries, with more nations promising to participate in the future. “As part of World Trade Orga

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