The Effect of Having Single Asian Currency

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The Effect of Having Single Asian Currency Nowadays, in a global environment, people are motivated to develop technology, communication, economy and education. In Asia, required of those developments force people join together into organizations such as Association of South-East Asian Nations (ASEAN), or Asia-Pacific Economic Cooperation (APEC) in order to speed up development and to build up relationship among countries. As a result, Asian countries are promoting the idea of having a common currency. However, there are many significant effects of having a single Asian currency. First of all, an advantage of having a common currency might be that could provide a favorable condition for trading. At this time, each Asian country has its own currency, which makes economic trade become complicated when one company wants to sell its product overseas. This affects product pricing; the currency of each country needs to be converted in order to create a same cost for the item, which may cost different prices in different countries in the same product. For example, a coke cost $VND 5,000 in Vietnam, $Baht 7.14 in Thailand, or $Yen 22.12 in Japan; these are the same amount but different currency. The company has to set up a department to decide the price of one product in each country. Conversely, if all Asian countries used one common currency, it could be $Yen 22.12 in any Asian country, which could make it easier to organize the price. According to Sanchez-Klein, when products are priced in a common currency, companies and customers can compare the price between countries without calculating or adding exchanges rate. (56) As a result, businesses are easier to set up product price in other countries, and consumers also have a chance to compare prices in different countries. Secondly, a single currency could help people who travel to different countries save

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