While the cash changeover represented the concluding act of the move to the single currency, many of the benefits of the euro materialized even before joining EMU. The successful cash changeover, which marks a further move towards successful integration with EU partner countries, will reinforce these positive effects.
In the old days, comparative advantage was largely determined by “factor endowments”, i.e. land, labour and capital. Geographical location and early starts in industry also conferred greater advantages. Thus, at one time, a country’s trade pattern, was determined by its natural resources and the productivity of its land.