Case Interview Prep

Answer: C - Political arguments and disharmony amongst member states are not advantages to the European Union.

Key Takeaway: Towards the end of the 20^th century, many European countries joined forces by forming an economic and monetary union. The union was designed to provide a competitive economic bloc against the large economy of the United States and the emerging economies of China and India. The resultant union had several advantages including the removal of currency conversion costs and exchange rate uncertainty. The union also lowered inflation and interest rates while increasing competition and efficiency.