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ECS3703 Assignment 2 Semester 2 2023 (753306) - DUE 7 September 2023
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Exam of 7 pages for the course ECS3703 - International Finance at Unisa (COMPLETE ANSWERS)
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ECS3703Assignment 2
Semester 2 2023
(753306) - DUE
7 September
2023
QUESTIONS WITH ANSWERS
[School]
[Course title]
, ECS3703 Assignment 2 Semester 2 2023
Question 1
Suppose the Sub-Saharan African region intends to adopt a common currency
for its member countries as it would be economically beneficial for the
participants (nations). (a) What is this arrangement
called……………………….…………………… (2)
Monetary Union: A Monetary Union is a form of economic integration among
countries where they adopt a common currency and coordinate their monetary
policies. In this arrangement, member countries give up their individual national
currencies in favor of a single shared currency. The European Union's adoption of
the euro is a well-known example of a monetary union.
(b) In your view, would the Sub-Saharan African region have any chance of
benefiting from this kind of arrangement, and why?.................................(10)
Trade Facilitation: With a common currency, trade between member countries
becomes more straightforward and efficient as there are no currency conversion
costs or exchange rate uncertainties. This can lead to increased intra-regional trade,
fostering economic growth.
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