ABSTRACT
This chapter seeks to evaluate how Economic and Monetary Union (EMU) transforms the current and future performance of UK enterprises, in terms of its micro, macro and dynamic impact. It explores the principal forms in which monetary union impinge upon existing market conditions, causing firms to reassess their pricing and marketing strategies. The balance of the available evidence indicates that monetary union have a significant impact upon British business whether or not the UK decides to participate in the project. All firms that export to participating countries would have to replace their existing catalogues, packaging and pricing policies, due to the change in currency and translation of current prices necessitating a re-evaluation of product volume and marketing strategy. However, there is an equally powerful case that the euro will be a weaker currency than Sterling, so that British business would enjoy lower real interest rates by remaining outside of the single currency.
