What will happen if there is only one currency used in whole world?
Answers
Answered by
13
A good question!
Now think of it like this, if I work in America and get $3000 for a month, and work in India to get Rs. 10000 (just an example, I'm actually broke!) but if the whole world has the same currency, then there would be no point in working in America, since I can make more money (in numerical value) in India, or make more money in America (based on monetary value). So lots of people would move from America to India, since you make make more money there and vice versa.
Here's the rundown on what might happen:
1) Lots of Immigration to places where people are able to earn more money (as given in the example above)
2) Loss of Import-Export businesses. Since they are profit-based, having a single currency for the whole world would not be a great incentive, because these businesses often rely on the value of certain currencies going up in the future. They'd actually be wasting money/resources trying to export/import stuff. So the brunt of importing necessities would fall on the Government/NPOs.
3) It takes away a Government's ability to change the denomination or currency notes and also, its ability to devalue its currency in international markets. This is necessary, in case of possible economic collapse, as people in countries with struggling economies often accept hard cash in the form of currencies of other nations.
P.S - For some reason, I get the feeling that you're asking this with reference to the Eurozone Crisis and the Grexit. The main objective of the European Union was not for economic support, but to prevent another World War from happening in Europe (After WWII got over, the leaders of the European nations got together and decided to form the European Union). Lots of economists have been saying that the European Union is faulty and will not work (and we're currently seeing an example of that), but its main purpose was to nurture good relations between the people living in a continent that was filled with wars for most of the past 2,000 years.
Now think of it like this, if I work in America and get $3000 for a month, and work in India to get Rs. 10000 (just an example, I'm actually broke!) but if the whole world has the same currency, then there would be no point in working in America, since I can make more money (in numerical value) in India, or make more money in America (based on monetary value). So lots of people would move from America to India, since you make make more money there and vice versa.
Here's the rundown on what might happen:
1) Lots of Immigration to places where people are able to earn more money (as given in the example above)
2) Loss of Import-Export businesses. Since they are profit-based, having a single currency for the whole world would not be a great incentive, because these businesses often rely on the value of certain currencies going up in the future. They'd actually be wasting money/resources trying to export/import stuff. So the brunt of importing necessities would fall on the Government/NPOs.
3) It takes away a Government's ability to change the denomination or currency notes and also, its ability to devalue its currency in international markets. This is necessary, in case of possible economic collapse, as people in countries with struggling economies often accept hard cash in the form of currencies of other nations.
P.S - For some reason, I get the feeling that you're asking this with reference to the Eurozone Crisis and the Grexit. The main objective of the European Union was not for economic support, but to prevent another World War from happening in Europe (After WWII got over, the leaders of the European nations got together and decided to form the European Union). Lots of economists have been saying that the European Union is faulty and will not work (and we're currently seeing an example of that), but its main purpose was to nurture good relations between the people living in a continent that was filled with wars for most of the past 2,000 years.
rafia86:
how i am looking in this photo ???
tysm yaarr
mom hai na yaar
mom will scold me
Answered by
4
Answers hhàaaaaaà
I am not interested to give you the answers
There is our friend Google you can find information
Explanation:
Similar questions