Question

17 members of the European Union currently use the euro. As the European Union continues to grow (the last country to enter was Croatia in 2013), does the euro have a chance of becoming the next dominant currency of the foreign exchange market?

Clearly begin your response with a YES of NO, then briefly explain/justify your response (2 -3 sentences should be sufficient).

Answer 1

• Yes.European union formerly Eropean Economic Community(EEC) is the most advanced case of economic integration and also most successful economic union in the world.
• The EU generated an estimated 24% share of the world's nominal GDP and an estimated 17% share of global GDP in purcasing parity, making the largest economy in the world. It is the biggest trading partner to several large countries such as the United States,China and India.
• The EEC accounts for roughly a quarter of the world trade.The unification would lead to a restructuring of the economy of the EuropeanUnion and would result in efficiency,improvement in production.trade creationand increase in income,employment and consumption.So because of the importance of European Union in world trade euro have a chance of becomeing the next dominant currency of the foriegn exchange market.