The introduction of the euro, Europe?s single currency has been in the planning and preparation stage for over ten years. One of the reasons for such the long wait was the skepticism of the mere idea of a single currency that the euro brought about globally. The idea came about in the early 1970?s but was tabled due to a rise in oil prices. Again in the early 1980?s the idea surfaced again and was agreed upon in 1992 by the Maastricht Treaty. After the agreement there were certain criteria that each country had to adopt, such as a controlled rate of inflation and the debt/GDP ratio. These things had to be accomplished in order be apart of the euro and have a smooth transition to the new currency.

From a global aspect there were many doubts abou

Based on the eligibility requirements to participate such as the inflation rate which was mentioned earlier as well as currency stability, interest rates, budgetary policies and government debt level, the result was a stronger economy and growth. This growth in the economy leads to a greater demand for US goods.

Outside of regular trade agreements there has been an increase in e-commerce. The introduction of the euro has made it easier to conduct business via the internet. American business can now give prices in the euro as can be seen on sites such as EBAY. This allows European consumers to comparison shop based on prices and see the American web sites as European friendly.

? Bring inflation and interest rate stability

The American dollar has a lead over the euro in many ways. It has 56% of the world?s foreign exchange reserves, 48% of export invoicing and 80% of the foreign exchange transaction. (Bernard) Historically there has been only one dominant currency. However with the economy the US faces at this present time there is soon approaching a change. The dollar has bee

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