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The Impact of the Euro on the World Economy, Article Writing Example

Pages: 1

Words: 260

Article Writing

Based on the presented evidence, it appears that the Euro has a negative impact on the world’s economy. This has been exemplified by recent economic history in which Greece’s economic crash has posed a significant threat to the economies of other members in the European Union due to the manner in which this situation impacted that value of the Euro compared to other currency around the world, such as the dollar. Specifically, Germany suffered from this economic status, as it had already incurred large amount of debts prior to Greece’s crash. After this event, it became even more challenging for these debts to be repaid.

Ultimately, economic events that cause the value of the Euro to decline impact the trade partners of these nations as well. The laws that guide international supply and demand are subject to change, because a deflated monetary value could result in the need to raise prices for good. Therefore, countries that look to the members of the European Union for trade will find that they will need to acquire products for larger prices, which will in turn alter the value that they are able to sell their own finished products at. This situation makes it clear that despite engaging in different political and economic practices, the world’s nations are tied together in terms of wealth. During periods of time in which the world’s leaders have a strong economy, the world economy is generally strong as well. However, when these leaders incur catastrophes, the world enters a state of depression that is difficult to get out of.

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