| Author | Pongpat Srinang |
| Call Number | AIT RSPR no. SM-99-31 |
| Subject(s) | Money--European Union countries
|
| Note | A research submitted in partial fulfillment of the requirement for the degree of Master of
Business Administration, School of Management |
| Publisher | Asian Institute of Technology |
| Abstract | and the international monetary system. It will have important implications not only
for the Union and its Member States, but also for other countries in the world.
After the break down of the Bretton Woods system, the yen and mark evolved
as international reserve currencies next to the US dollar. With the size of the Economic and
Monetary Union, the stability orientation of its policy framework and the integration of its
financial markets, this implies that the euro will be able to balance this structure. The euro as
an international currency has to play the role of a reserve currency, an investment currency, a
currency for transactions and an anchor currency.
Inevitably, Thailand is expected to feel the effect of the euro. This research
discusses the implication of the introduction of the euro on Thailand through trade and
investment. It also looks at the policy implication for the country of the use of euro as
international currency.
In the short term, the introduction of the euro is expected to pose exchange rate
uncertainty for Thai exporters to the European Union because of potential concerns for the
European Central Bank in managing an exchange rate and monetary policy.
In the long term, the effect of the euro on Thailand will depend on the stability
of the euro currency, the implications of the single currency on the countries in the euro-zone
and abroad, and the euro's potential to rival the US dollar as the premier currency of
international trade and global reserve.
Since the euro will be one-third of the world's official foreign reserve and there
is a strong probability that the euro will be stable as seen from the EU' s trade surplus and
surplus current account, it is reasonable for Thailand to denominate its trade with the euro
states in euro.
Moreover, Thai businesses' recommendation regarding measures to strengthen
the competitiveness of Thai exports into the EU, namely the improvement of production
efficiency, product quality and the extension of product lines for long term competitive
advantage should be highlighted. |
| Year | 1999 |
| Type | Research Study Project Report (RSPR) |
| School | School of Management (SOM) |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Tang, John C.S. |
| Examination Committee(s) | Truong Quang;Buchel, Bettina |
| Scholarship Donor(s) | Asian Institute of Technology (Partial) |
| Degree | Research Studies Project Report (M.B.A.) - Asian Institute of Technology, 1999 |