Nearly 20 EU countries have adopted the euro as their national currency and are termed the eurozone. Sharing a single currency eliminates exchange fluctuations and simplifies trade. Eurozone firms had to make various operational changes, especially regarding finance and accounting, but generally prefer dealing in the euro. The ECB views the eurozone as one region and must apply the same monetary policy to all EU members, but this is problematic at times. The United Kingdom opted not to join the monetary union, keeping the British pound as its currency. What types of competitive advantages and disadvantages are associated with the implementation of the euro from the perspective of the firm?

What types of changes did firms make once the euro became the new currency? Was adopting the euro worth it? Why or why not? L01