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Economics A Level (DONEEEEEEE)

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Question:

What are the Reasons for Entry to the EMU?

Author: eric_galvao



Answer:

-FDI into Eurozone Nations may have Increased. If the UK joined the Eurozone, it would have been a Bigger Market with Lower Transaction Costs. Not Joining may lose some Inward FDI -Potential with Less Transaction Costs that could lead to Greater Trade and thus Higher Growth and Employment -Still Fiscal Policies available for Governments to use to Manage the UK Economy, but they still would have to be in line with EU policies, such as Budget Deficit


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