Currency Events
Is your business ready for the euro?
Everybody's heard that on January 1, 1999, the European
Union (EU) will adopt the euro as its currency system. But what
U.S. exporters might not realize is that it means doing business in
European countries will get a lot more complicated.
"Companies have to prepare now for a far more competitive
marketplace in Europe," says Thomas P. Mottley, an
international trade specialist with the U.S. Department of
Commerce. "It's going to take some adjustment, but it can
be done."
To start with, business procedures must be modified as soon as
possible--think accounting, computer, marketing and payment
systems. For instance, most U.S. businesses currently invoice
European customers in U.S. dollars, get paid in dollars, and
process letters of credit in dollars. "But European companies
may now insist on payment in euros," Mottley explains.
"If you want to do business in Europe, you need to be able to
bill in their currency."
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With only four months to go, the clock is ticking--so prepare to
put forth time and money to modify your procedures. Because the EU
is fast on its way to becoming the world's largest unified
trade bloc, it will be an investment well worth it in the long
run.
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