Essay - Effect of A Unified European Economy on the Strength of...

effect of a unified European economy on the strength of the U.S. dollar

Introduction

Since the introduction ***** the Euro, some economists and business people have worried about the effect of a ***** *****pe*****n ***** on the strength of the U.S. dollar. However, such concerns are for ***** most part (at the current moment) overwrought: The Euro is not a serious thre*****t to the *****.

***** understand why the dollar remains in a good economic positions v*****-a-vis the euro, we must understand something both of the euro's background and of the state of the world economy as a whole.

Transnationalism has changed the shape of our world. This is true even though most of us have only a vague idea about what transnationalism is, and even those who believe that they know ***** the word means in fact d*****agree over the definition ***** the term ***** is more or less a synonym for "globalization." Globalization, or transnationalism, in general refers to ***** current flows of capital, people, inf*****mation and images and culture across national borders.

***** flows of money, products and ideas across the previously far more impermeable national borders of ***** world has been brought about in large measure through two important and related processes: The first of these is the establishment of such ********** trading agreements as NAFTA, or ***** North American Free Trade Agreement (a p*****ct that was in many political ***** economic ways prompted by the found*****g ***** the larger and more economically powerful European Union). The second major reason for the increase of economic globalization has been the substantial increase in companies ***** do ***** on a glob*****l scale. These companies have been *****ly helped by such ***** as *****, which is hardly surpris*****g since large corporations provided significant pressure to have such alliances brought about (www.latimes.com).

While certainly the establishment of the Euro h***** strengt*****ened European economies, the ratification of NAFTA has helped to do the same for the ***** and the process of globalization in ***** bus*****ess world ***** helped to remake traditional economic alliances.

Brief His*****ry of the Euro

***** ***** integration of the ***** Union has in many ways reached its climax ***** ***** introduction of a common currency, the euro, *****nd in the accompanying reduction of international tariffs. Indeed, there can be few more compelling symbols of the degree of cooperation that now exists among the members of the European ***** than the euro, which was at the time ***** idea was introduced a nearly revolutionary proposition.

It was almost unthinkable when the countries ***** the European Community decided to adopt a single currency ***** each would in fact cede one of the most important symbols ***** national identity and l*****k its national economic de*****dency so closely ***** that of other countries. And yet, the growing globalization of the ***** can be seen, in retrospect, to have made this almost inevitable.

***** Common Market in Europe *****gan as an economic **********ciation ***** *****an countries that was established ***** promote continental