The current Greek Debt Crisis has been impacted by international business. Greece’s Debt Crisis is a result of international business. Eurozone countries agreed to use the Euro as a common form of currency starting in 2001. International business between member countries increased as a result. In the stronger member countries such as Germany, labour cost increases were less compared to weaker countries like Greece. Goods from Greek became more expensive and less competitive, leading to a trade deficit. To even out the deficit, Greek had borrowed from Germany, France and Italy. However, due to the recession in 2007-2009 funds to lend to Greece by these countries were unavailable. This resulted in high levels of inflation and unemployment. The government was unable to repay loans to individual countries and the International Monetary Fund and hence the current Debt Crisis. International business through trade and borrowing between Eurozone member countries, therefore, has impacted on the Greek Debt Crisis. My recommended change would be a direct investment in Greek to aid the economy as opposed to financial loans that go towards the settlement of the government’s loans. Investment in the economy will create employment and aid in the recovery. Direct investment such as projects will also yield returns. (Arghyrou, Michael and John 10)

Fiat money is a monetary system where paper currency or coinage has its value defined by a central bank or financial institution as legal tender. The euro is fiat money within the Eurozone and, therefore, Greece. The impact of fiat money and as a common currency, in this case, about international business is no transaction costs, elimination of exchange rate uncertainties as well as price transparency between different countries.  The cause of the existence of fiat money, concerning the Euro, in this case, is an agreement between member countries to use one currency with a central authority or mechanism to play the role of fixing the lending rates to avoid inflation of the currency. (Arghyrou, Michael and John 6)