Unit 3 Economy 经济I
passage (2/4)

Hints:
EU
Removing this source of uncertainty allows investors to locate according to economies of scale and may lead to more plants of optimum size, a reduction in unit cost of production, and increase in efficiency. A single currency provides the framework for counter-inflationary policies. A single currency could lead to a reduction in the market discrimination that currently exists in the EU, for example, prices of motor cars of the same specification stand higher in the UK than they do in France, as the quotation of prices in common currency discourages arbitrage activity and reduces the market division on which such discrimination relies. Thus, firms in one country cannot continue to raise their prices higher than their European competitors and still remain competitive. Similarly, the reduction of exchange rate fluctuations enables exporters and importers to engage in meaningful export planning and pricing.