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

t the change in currency. The way businesses conduct themselves, the way people travel and the way corporations and companies invest their money will all be effected. However the bigger question is how it will affect the US, especially in relation to trade.

With the introduction there have been many advantages to the usage of the euro such as

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.

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 been weakening.

Some topics in this essay:
Euro American, America Europe, Maastricht Treaty, Portugal Spain, Bernard Historically, Western European, Benefit SMES, Dollar American, Lower Prices, Euro Prior, introduction euro, trade agreements, inflation rate, single currency, american dollar, foreign exchange, lower cost, american business, compare prices,