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Subject:
Euro
Category: Business and Money > Finance Asked by: baseball2-ga List Price: $2.00 |
Posted:
22 Nov 2005 06:36 PST
Expires: 22 Nov 2005 10:19 PST Question ID: 596196 |
Do you feel the use of the Euro would be beneficial for the members of NAFTA? |
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There is no answer at this time. |
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Subject:
Re: Euro
From: myoarin-ga on 22 Nov 2005 09:28 PST |
No. That would require all NAFTA members to handle transactions in a currency that is not the national currency of any one of them. One might argue that this creates a more level playing field instead of having the US dollar the leading currency in NAFTA, but it would just unnecessarily complicate transactions and make them more expensive since foreign exchange transactions would be require for every settlement, in most cases, two; the buyer would have to buy Euros and then the seller would have to sell them, whereby major companies (primarily US ones) might have an advantage if their European operations allowed them to use Euros from or for these activities and thus avoid the foreign exchange transaction. |
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