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　　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?

　　Model Answer:

　　It is clear to me that the idea of a single global currency is an excellent ideal to work towards. There can be no doubt that trade and travel would be vastly easier. On the other hand I believe that it would cause problems today.

　　The benefits of a single currency can be seen with the use in Europe of the Euro. Whenever you are travelling between countries using the Euro, the problems of currency changing and exchange rates are history. Similarly business between countries using the Euros is so much easier; no more worrying about exchange rate risk and pricing. Everyone‛s money is the same. The same thing is true with the US dollar. Most countries do not use the US dollar but it is accepted in many places. There are many countries that you can travel to and just take US dollars to use.

　　At present though a global currency would be impossible. Firstly most countries would not accept the idea. Secondly all countries are in different economic states. Some are economically very strong and some are in a state of collapse with inflation ruining the economy. Such countries could not be brought into a world currency as it would cause massive financial instability worldwide. So it is clear that a global currency would indeed cause some serious problems.

　　So, in conclusion I see a global currency as a future ideal but it will not happen in my lifetime. It would make trade and travel much easier but the problems it would cause nowadays would be insurmountable.