You should spend about 40 minutes on this task.
Trade and travel would be a lot easier with a single, global currency that we all use. Do you agree or disagree with this statement? Would a single currency cause any problems?
Give reasons for your answer and include any relevant examples from your own knowledge or experience.
You should write at least 250 words.
Sample Answer
With the use of one global currency, there will be many benefits in travelling and cross-border business. I agree with the statement that trade and travel would be a lot easier with the use of one global currency. However, there might be some problems. Let’s discuss the pros and cons.
When thinking of one currency, everyone points to the Euro. It is a common currency which is being used in multiple countries of Europe. European citizens and other tourists travelling to Europe don’t have to carry multiple currencies. Only one currency works in such countries and people don’t bother about the exchange rates as well. Similarly, global deals of business and trade will be straight forward as this will be without the fluctuation of forex rates. The conversion hassle and global acceptance of a currency would be reduced and some monopoly in trading would be reduced.
Although, the idea of global currency is very appealing but there might be some issues in its implementation at the global level. There are more than 200 countries and each has its own currency. No two currencies have the same exchange rate. During the crossborder deals, the forex difference plays a vital role. With the use of one single currency, countries having higher exchange rates with respect to other will be at receiving end and have to bear the deficit.
In the end, it is concluded that one global currency is beneficial for the general public. But there would be challenges in its implementation. Once the problems and issues are resolved, it would be a lot easier for the business community as well as for the travellers and tourists.
[ Written by – Mansoor Afzal ]