.BUSINESS ASSIGNMENT

Business Assignment





Euro is the European Union members to use the EU's single currency - the euro zone countries. Currently, there are 16 members of the euro area, while countries and regions to adopt the euro as the local single currency. But as U.S. competitors, the world's reserve currency, the euro's circulation has been limited to the areas. (Biersteker 2002, 157-176) For 2007, according to official GDP data, forecasts, the euro area has become the world's largest economy. The most important euro-zone economic data from Germany, the euro zone's largest economy, the main economic data, including: GDP, inflation rate, industrial production and unemployment. Also, each member of the eurozone budget deficit also have an impact on the euro, according to the eurozone Stability and Growth Pact, countries must control the budget deficit below 3% in GDP, and the country should further reduce the deficit target(Anderson 1997, 80-107).

And other currency exchange rates compared to the euro against the dollar most vulnerable to political factors, France, Germany or Italy, as well as domestic factors in Eastern Europe geographical political and economic instability will affect the market performance of the euro(Caporaso 1996, 29-52). The most important euro-zone economic data from Germany, the euro zone's largest economy, the main economic data: GDP, inflation, industrial production and unemployment. Also, each member euro zone's budget deficit also have an impact on the euro, according to the eurozone Stability and Growth Pact, countries must control the budget deficit below 3% in GDP, and the country should further reduce the deficit target. (Bull 2002, 45)

The year 2010 ended at a time when most European countries faced serious monetary crisis since the end of World War II. (Checkel 2005, 801-826)European citizens in 2010 and spent many difficulties under the pressure of economic austerity measures and reduction of public expenditure. European countries in 2010 were faced with the consequences of policies pursued by their rulers face the economic crisis of 2008(Checkel 2005, 801-826). The economic crisis started from America and spread rapidly across Europe. Strong ties to financial institutions and monetary policies of European countries to America, became a cause that many European countries and especially poor countries, fall into the whirlpool of financial and economic crisis. (Cowles 2001, 78-96) European governments to rescue banks and financial institutions at risk of bankruptcy spent billions of Euros and this action was due to significantly increase the budget deficit and the debt of these governments. In the euro area, more felt the effects of budget deficit and external debt. (Wallace 2000, 493-519) Eve of the summit, the debt crisis in the euro area once again is sounding the alarm. Fitch lowered the credit rating agencies 24, the Portuguese government's credit rating; people will step for the Portuguese Greek footsteps along with increasing concern. Greek rescue package as inconclusive, Portugal will again be downgraded, and the euro fell against the dollar 10 months to the days low. (Fearon & Wendt 2002, 52-72) It can be said that the introduction of the ...