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If you believe the macroeconomists, Europe’s new common currency will bring
If you believe the macroeconomists, Europe’s new common currency will bring
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2024-06-08
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问题
If you believe the macroeconomists, Europe’s new common currency will bring either economic chaos or the dawn of a new era growth, restructuring, and prosperity. But for those who will be dealing with the euro on a daily basis, the new currency leads to a much more pragmatic dilemma: just how to put a price on everything from butter to Big Macs.
There’s little doubt that consumer demand will lead to some pricing changes, especially after pricing in euros begins in Europe. In France they cost about $2.50, while in the Netherlands they cost $1.0. Priced in guilders and francs, the difference isn’t so noticeable. But when pricing in euros begins next year, French ice-cream lovers will soon figure out that they are paying 2.5 times what the Dutch are paying. The same is true for a vast number of products. "Currently we have different prices in different countries, which isn’t so visible with different currencies," says Gunther Moisle of German mailorder house Quelle Schickendanz, "The moment you price in euros, you can see it."
Of course, nobody is going to drive across borders just to buy cheaper ice cream. But they already do so for big-ticket items such as cars. Moreover, says Jan Harts, Unilevre treasurer, "The attitude of the consumer towards your product may change if he feels ice cream is twice as expensive at home as it is somewhere else."
Thus, most people think the euro will force prices to converge. Volkswagen, which has been slapped with fines by the European Commission for trying to keep Germans from buying its cars at lower prices in Italy, says it has already narrowed price differentials to 10%. Wolfgang Hartung, head of the euro project at Daimler Bens, warns that anyone who thinks they can maintain vastly different prices in the era of the euro is engaged in wishful thinking. "People are too well-informed, "says Hatung. Quelle says it is thinking about raising prices in less expensive countries to prevent middlemen from buying, say, in Spain and then selling in Germany.
Companies that don’t set their own prices have a more difficult problem. Unilever says one reason Magnum bars cost more in France is that French retailers make a larger profit on them. Only half of the $1.50 price difference is accounted for by higher taxes, distribution and labor costs. If French and Dutch retail margins were equal, Magnum bars would cost only $1.75 in France. Unilever is trying to persuade retailers to cut margins in order to keep customers. "If retailers don’t drop margins, they will go out of business," claims Harrs.
Unilever figures it has a few years to sort out these issues because most people buy groceries with cash. That means Big Mac fans in Finland will keep paying 53% more for their burgers than fast food lovers in Portugal. [br] Most people think that the euro will ______.
选项
A、cause price differentials
B、allow people to buy items in an inexpensive country
C、force prices of the Same item to become similar or identical
D、allow the retailers to make large profit
答案
C
解析
参见第4段第4句:most people think the euro will force price to converge.Converge:come to a common point.
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