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| Topic: |
Business
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| Number of pages / Number of words: |
7 / 1738 |
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Unlike France, Germany and Italy who have all now adopted the single currency the Euro. This means France, Germany and Italy do not have their own balance of payment. When looking at the exchange rates of the four countries, France, Germany and Italy have a distinct advantage over the UK when deciding to operate with each other...
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This is because they all use the same currency so there is no exchange rate between them. Companies in the UK will have to evaluate the exchange rate between the ? Stirling and the Euro. Factors that will affect a country's exchange rate are importing and exporting and supply and demand. For example the more the country exports the stronger the currency becomes and vice versa...
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