【全國英語等級考試四級】Unit 3 經(jīng)濟I- passage (1/4)

The most clear-cut benefit of a single currency is that it will no longer be necessary to incur the costs of exchange from one currency to another. Travellers know that these costs are not negligible. First of all, there is a commission charge, usually a fixed amount. Secondly, the price of at which the traveller purchases foreign currency for domestic currency differs from the price of exchanging back surplus foreign currency. The removal of these transaction costs constitutes a gain from monetary union. Another benefit is that the removal of exchange rate variations between the countries of the EU would provide much more assurance to corporate location decisions. At present, a company takes account of the risk of exchange rate variation in its location decision, and this may lead it to scatter its plants across the various economies, to hedge against the risk of exchange rate variation.