How is dollarization different from monetary union? What will ...

[WhattoUnderstand]

How is dollarization different from monetary union?
 
  What will be an ideal response?

Question 2

Based on Table 3.1, if the world price of computers is four pairs of shoes, then the optimal strategy for each country would be
 
  A) to specialize in shoes.
  B) to specialize in computers.
  C) for Mexico to specialize in shoes, and the United States in computers.
  D) for the United States to specialize in shoes, and Mexico in computers.

[braelync]

Answer to Question 1

The nations do not share a central bank and monetary policy.

Answer to Question 2

B