FIN Unit1 - Individual Project Research Paper Example | Topics and Well Written Essays - 1250 words

FIN Unit1 - Individual Project - Research Paper Example The proposal will consider each country’s trade policies, currencies and culture. Turkey and Italy: Review This part of the assignment will discuss about the currency, trade policy and culture of a turkey and Italy. Currency of two countries: Advantages and Disadvantages Italy is the member of European Union. Euro is the currency of Italy. This currency has both advantages and disadvantages. The advantages of this currency outweigh the disadvantages. Euro is the single currency between the members of European Union. It eradicates the need of currency exchanging between Economic and monetary members. Economic and Monetary members saved an average of 30 billion US dollar in a year by switching to this currency. Elimination of volatility of currency exchange rate between the members of European Union is another advantage of Euro. On the other hand, switching to a single currency forced the members of European Union to give up their rights to the change of monetary and economic po licies. It is the major disadvantage of Euro. Despite the disadvantage, the members of European Union made it easy to sell and purchase the goods cross borders. Moreover, the lending and borrowing become easy through the concept of this single currency. In addition, fixed exchange rate of 2.25% provides significant benefits to the members of European Nation. This benefit includes the promotion of international investment and trade. In developing countries this benefit can enhance economic growth. Recent financial crisis is the major concern for Italy. On the other hand, Turkey is not the member of European Union. The country uses Turkish Lira as their major currency. The currency of Turkey has several bilateral tax treaties and investment with US that can ensure the elimination of double taxation. Moreover, this currency gives guarantee repatriation of capital in the convertible currencies. The central bank of Turkey has tightened the monetary policy after the inflation rate increas ed to 10.5% in the year 2011. The central bank of the Republic of Turkey provides several flexible policies, such as foreign exchange auctions, interest rate corridor, and adjustments to the repo auctions and requirements. These policies will help to stabilize the Turkish Lira. The currency recently has depreciated by 25%. EU and Turkey: Trade Policies Europe is considered as the leading global trading block. It accounts for one-fifth of the global trade. Each and every trade policy is developed for the 27 member states among the European Union. These members generally share a single market and border. It helps to empower European Commission when it talks with all the partners of European Union. The commission effectively acts as the negotiator for a specific negotiation process. This commission represents the members of European Union in the World Trade Organization. The European Commission provides unity to mould a key open for global trading process that offers fair rule. However , the trade policy of Europe helps several European organizations to generate employment and significant investment opportunities. Several new markets for the European E\exports are effectively open through the trade policy of Europe. The European Commission works on daily basis to remove unwanted export barriers. Moreover, effective and potential opportunities in European investment are motivating several