College of Technology London
Assignment 2: Research Report
Title: “The emergence of the Euro against the US Dollar and its impact on exports in the European Union”: A Critical Study
➢ Module Business Research Methods- MEP 1
➢ Lecturer DR. Audsin M. Dhas
➢ Written by Rahul Thorat
➢ Student ID 083710-75 -MEP/MBA
➢ Batch June 2008
This paper presents an overview of emergence of the US dollar and its impact on exports in European market. Thus, the facts and figures are the base of my research work; where I will discuss how the emergence of Euro against the dollar has affected the market? Impact of rate fluctuation on the exports between these Nations? I have also analysed the past figures of GDP-Gross Domestic Product for both the nations, which are discussed with figures comparison for 2007 and 2008.
Review shows the strength of the euro means the rising prices of imported raw materials have less impact on the economies of the euro zone and on their inflation rates, that is because prices for petroleum, grains and metals are quoted in dollar, which translate into fewer Euros. On the other hand, those companies that generate a large portion of their revenues overseas see that their goods and services are much more expensive, at least in countries that use the dollar and other currencies. These companies revenues suffer and they becomes less competitive.
Some expert say that the appreciation of the euro won’t have as much negative impact as expected, clearly, the latest microeconomic data suggest that is true. As per the review on Germany That all European country most dependent on foreign sales, that its exports increased by 3.8% in January, on a month-to-month basis, and by 9% on a year –to-year basis. All reports show that Germany is strongly resistant to the upward flight of the euro