Volume of trade are interlinked with two economic sciences indicator viz. exchange rate and transit cost. Both economic indexs can merely be maintained if states deal their trading in individual currency. UK trade more than half with euro country which means UK faces exchange rate hazard more than any other state. Although, UK is the portion of the individual market but non individual currency. There is no uncertainty that UK additions a batch for being a portion of individual market but that additions balanced the full portion with non being a portion of individual currency. Result, exchange rate hazard for little concerns increased with increasing in trade volume. However, there are non many differences in the exchange rate between euro and lb from the last few old ages but still bargainers have to pay the spread ( purchasing and selling difference ) cost.
The methodological analysis chosen for the current thesis can be presented in the signifier of the alleged ‘research onion ‘ . This administration of the applied techniques and methods gives the possibility of structural and consecutive position to the work design and bit by bit leads from the nucleus to come up beds of the research ( Saunders et Al, 2007, p. 132 ) . The proposed beds are structured from the ‘core ‘ to the ‘peel ‘ the undermentioned manner: research techniques and processs, clip skylines, picks of method, research schemes, attacks and research doctrines ( Saunders et al, 2007, p. 132 ; Yin, 2003, p. 156 ) . Type of Data Used in the Research and Its Beginnings
It would be more rational to get down the description of methodological analysis from the nucleus, finding the chief thoughts and attacks foremost. As it was mentioned above, the nucleus techniques and processs appear to be informations aggregation and information analysis. In their bend informations aggregation and information analysis are determined by the features of the information. The overpowering bulk of beginnings in the sphere classify the information as quantitative and qualitative by its content or significance. Therefore, the sense and distinctive features of the nucleus techniques and processs are dependent on the informations type ( Saunders et Al, 2007, p. 145 ; Creswell, 2003, p. 220 ; Miles and Huberman, 1994, p. 24 ) .
It would be appropriate to depict methodological analysis from the base which means analyzing the chief thoughts and constructs foremost. As mentioned above, informations aggregation and information analysis are the basic techniques which in bend, depend on the features of informations. With the aid of countless sum of beginnings available, informations is classified as quantitative and qualitative based on its content and reading. Therefore, the features of the techniques and constructs depend on the informations type ( Saunders et Al, 2007, p. 145 ; Creswell, 2003, p. 220 ; Miles and Huberman, 1994, p. 24 ) .
The current research answers the inquiry whether the United Kingdom ready to fall in the European Monetary Union or non. Correspondingly, the places of the two related currencies are discussed and estimated ( the Pound and Euro are meant here ) . As it is obvious from the subject of the thesis, the work with quantitative informations has been carried out. Besides the currencies, macroeconomic variables for both the United Kingdom and the European Union are analysed. These besides appear to be quantitative informations. The variables will dwell of GDP, imports and exports, rising prices rate and involvement rates. It follows that the current research investigates exceptionally quantitative or numeral informations. To be more categorical it may be assumed that discoursing this job there is no topographic point or possibility for conjectures, biass or public sentiment.
Therefore, it may be concluded that informations aggregation, in connexion with the character of the stuff, has been carried out trusting on the precise pecuniary beginnings and indexs. In this relation assorted statistical bureaus and informations bases have been of great usage. These are preponderantly the Eurostat ( 2009 ) and Global View ( 2009 ) . Much attending has been given to the historical or dynamical fluctuations of the quantitative information ( the current economic conditions determine the fact that these measures are non inactive and unchangeable ) . Data analysis process has been carried out utilizing diagrams and graphs which better organise the collected information.
Following from the nucleus to the surface beds of the ‘research onion ‘ , clip skylines of the current research projech should be defined. However, it is instead difficult to be so categoric in this point as it was with qualitative and quantitative informations. In the current thesis it has been proposed to put to death probe harmonizing to the both cross-sectional and longitudinal clip skylines. The account of this pick can be given as the followers. Longitudinal clip skyline is really sufficient to follow the dynamic anf historical development of each of the variables such as currencies ( the Pound and the Euro ) individually. This gave the possibility to estamate their volatility and kineticss. Without longitudinal clip skyline it is practically impossible to characterize a variable in the stray period of clip ( Secaran, 2006, p. 135 ; Heckman and Leamer, 2007, p. 4061 ) . The information in the time-series will widen from 1990 to 2009. This period is selected because it allows detecting macroeconomic indexs before Euro was introduced in 1999 and after its debut. About equal periods were chosen for observation the pre-Euro and post-Euro events. This will let doing a comparing and pulling a conclusing whether the UK will profit from come ining the eurozone.
However, even this effectual model is non plenty for nonsubjective review of the job. Cross-sectional clip skyline gives the possibility to analyze interactions between difference economic variables. Therefore, the current thesis implements both cross-sectional and longitudinal informations, which is non forbidden by methodological rules ( Secaran, 2006, p. 135 ; Heckman and Leamer, 2007, p. 4061 ) .
Methods of Data Gathering
Discoursing the research picks which have been applied to the current thesis, it should be foremost specified that methodological rules allow utilizing a broad assortment of methods both separately and in combination. Data aggregation and information analysis are the cardinal processs of a research, and they can be instead complex ( they can be carred out in two or three stairss ) or comparatively simple ( one-step processs ) . Trusting on the mentioned above features the research picks appear to be besides single-channel method, assorted method and multi method. The truth is that the prosedures of informations aggregation and informations analysis can non be and run in isolation. Besides, particularly in concern and economic researches the probe is connected non merely with quantitative and qualitative informations, but besides with primary and secondary informations ( Saunders et al, 2007, p. 146 ; Lundberg and Young, 2005, p. 351 ) .
In other words, taking a single-channel method of research implies utilizing a individual quantitative informations aggregation technique. Consequently, multi research method implies utilizing several informations aggregation techniques with farther application of comparative quantitative informations analysis processs. However, informations analysis processs are anyhow restricted by either qualitative or quantitative field. And eventually, as it may be drawn from the name of the method, assorted method implies utilizing both qualitative and quantitative informations aggregation and informations analysis techniques and processs in sensible and sound combination ( Saunders et Al, 2007, p. 146 ; Lundberg and Young, 2005, p. 351 ) .
The research pick in the current thesis was done in the favor of glandular fever method because a individual technique was used to retreive the information. This technique consisted of happening economic indexs for a given period at statistical beginnings that are publically available. No studies or interviews were conducted to do this research a multi method survey. The complexness of the given inquiry sets the demand to roll up and analyze assorted informations, such as currency kineticss, the degrees of international trade, econoic growing, rates of rising prices and involvement rates. These informations are non likely to be obtained from appraising the population or using techniques other than covering with statsitical beginnings. Therefore, it may be concluded that the chosen glandular fever method has proved to look rational and effectual solution for the current thesis ( Saunders et Al, 2007, p. 146 ; Lundberg and Young, 2005, p. 351 ) .
Scheme and Approach
The undermentioned two beds of the ‘research onion ‘ are research schemes and research attacks. These beds are considered to be highly interconnected. Indeed, the schemes rely on and fall from the chosen attacks, and frailty versa attacks can non let beliing to their nature schemes ( Saunders et al, 2007, p. 146 ; Bryman and Bell, 2007, p. 11 ) . It would be more logical to account for attacks foremost, for the cardinal thought of the thesis clearly points what attack should hold been better chosen. The probe was done trusting on the deductive attack.
The kernel of the deductive attack implies the undermentioned sequence of stairss, made in the class of research. First of wholly, a hypothesis or even two beliing to each other hypotheses ( as it was in the current thesis ) are formulated harmonizing to the theoretical places studied in literature reappraisal. Then, at the phase of informations analysis the hypotheses are being tested and the findings either support or belie the theory. After that, if necessary the theory can be modified in the visible radiation of the findings. In other words, deductive attack implies proving already exiating theory in the model of a certain instance ( Saunders et Al, 2007, p. 146 ; Bryman and Bell, 2007, p. 11 ) .
Alternatively, inductive attack gives the possibility to deduce some new or unproved theoretical Torahs from a cetain quantitative or qualitative informations ( Saunders et al, 2007, p. 146 ) . The given subject of the thesis suggested that deductive attack would be more usefule since the pick of literature with empirical research is present and hypotheses could be set before roll uping any informations.
To be more specific, the chosen deductive attack should be described in inside informations. First, in complete harmony with the formulated eariler scenario, the two following hypotheses were set: the move to the Euro will profit the United Kingdom in the conditions of the current recognition crisis and the move to the Euro will non profit the United Kingdom in the conditions of the current recognition crisis. Again, harmonizing to the presented scenarion, informations aggregation techniques and informations analysis processs have been called to turn out one of the two premises and to reject the other. At the concluding phase the determination have been compared to the the impression of optimal currency country and pecuniary brotherhood theory, in other words, the theory was specified.
It may be stated for certain that in this regard the deductive attack has several of import advantages. First, it ever aims “to explain insouciant relationship between variables” ( Saunders et Al, 2007, p. 146 ) . Besides, holding set ab initio two beliing to each other hypotheses, one of them will decidedly turn to be true, therefore, the findings will be logical and there will non be a opportunity for unexpected consequences. However, the attack may be blamed for predictability in a manner. It may be argued that concluding findings should be nonsubjective and should arise independently from antecedently set conjectures ( Bryman and Bell, 2007, p. 11 ) . It may be considered that it is for the most portion true in the instance when a research deals with qualitative informations. The current thesis implies merely two possible solutions as concluding findings. To escalate impartial probe, objectivism has been used as the cardinal research doctrine of the research.
And, eventually, the scheme that has been chosen for the thesis and has proved to be the most effectual in replying the put inquiry is comparative analysis. The UK may be ready to fall in the eurozone. However, will it convey benefits to the state? There may be more disadvantages than advatanges in accepting euro as domestic currency. First of all, volatility of the current national currency of the UK, British lb, will be compared against volatility of Euro. Second, rising prices in the eurozone and the UK will be evaluated and compared. Third, the research will concentrate on comparing of concern rhythms in the UK and different members of eurozone. If the UK joins eurozone, there will be a individual pecuniary policy of the European bank. If concern rhythms of the UK do non co-occur with concern rhythms in eurozone, a individual pecuniary policy will be uneffective and may convey disadvantages to the UK. As one of the advantages of accepting Euro, increased international trade can be mentioned. Single currency allows avoided the exchange rate hazard and the states should profit from it. This will besides be tested in the analysis by comparing the groth of imports and exports in the European Union before and after debut of Euro.