Running head: FOREIGN EXCHANGE1Foreign ExchangeStudent NameInstitution Name
FOREIGN EXCHANGE2Foreign ExchangeIntroductionGenerally, there have been many debated issues concerning the accession of Turkey to the European Union (EU). Particularly, some groups of individuals suggest that Turkey’s involvement in the union could boost its economic status and geopolitical accruals. On the other hand, others argue that its accession could be a major blow to the nature of European Union since it would destroy its original formality. However, at last, Turkey has decided to fully commititself to the union. Therefore, this article will be focusing on several qualitative issues that include currency, inflation, interest, trade, and economic stability in relation to Turkey’s involvement with the European Union.Turkish Accession to the European UnionConsidering the issues reported on many aspects of the Turkish economy, it is likely that it could face a lot of difficulties if it commits to the euro as the currency. Moreover, joining the European currency is a conditioned aspect (Özer, Nas, & Özer, 2016). First, it is likely that the inflation rates in Turkey might be high since it would be struggling to meet the demands of foreign currency. Secondly, trade activities might be slowed down by the productivity of Turkey in areas such as Agricultural output is unreliable. As such, trade practices could be irregular. On the other part, interest rates may also rise significantly because Turkish economy is financially unstable. According to statistics held in the Turkish economy (n.d.), they indicate that most of its foreign transactions accommodate a debt. The country, therefore, needs to increase its interest rates in order to balance the debts deficit. The issues discussed below will clearly elaborate the likelihood of these problems.
FOREIGN EXCHANGE3To begin with, focusing on the economic performance of Turkey, there emerges a heterogeneous picture. For instance, considering trade integration, it is evident that Turkey is the