Britain Join The Euro Area Economy Associated Degree Viewing Angle

The globalisation and international integration are trend of development of the world economy. The European Union is a successful example of economic integration. The UK is a special issue in the process of EU integration. When the EEC started the UK rejected to take part in. When the EEC went well, it tried to take part in and applied three times, then becomes a member of EEC. But the relationship between the UK and EU (EEC) is complexed. As a member in EU, the UK is special. It often disputes aganst the EU, so that it is called as half-hearted with EU. And now the UK is stiil outside the Eurozone. What reasons make the UK act particularly? Many researchers have given some explaints, such as the characterastic of nationality, the social problem, the international politics, economic reasons and so on. What is the essense behind the phenomenon? It is worthy of researching deeply. After having reviewed the history of the relationship between the UK and the EU, I found the economic factor is the primary one that determined the attitude and actions of the UK. The degree of economic correlation between the UK and the EU makes the UK idiosyncrastic. So I choose the economic correlation between the UK and the EU as a perspective to analyse the issue of the the economic benefit and cost for the UK'joining the Eurozone.We will define the economic correlation and divided it into several dimensions. Each dimension will be analyzed, by which we can measure the benefit and cost of the single currency participation. By combining the results from all dimensions we can know whether the net potential benefit is positive and whether the UK should paticipating the Eurozone under this condition. The paper contains six chapters.Chapter 1 is the literature revew and the framework of analysis from the perspective of economic correlation. And there build a simple model adapted from Krugman (1993). Chapter 2 analyses the history of relationship between the UK and the EU from the perspective of economic correlation. This is preparation for the normal analysis as well as the backgroud for the deep analysis late.Chapter 3 is analysis about the degree of the trade and investment correlation between the UK and the EU. We consider the benefit and cost of entering the Euro Area...