Advantages and disadvantages of dollarization

es dollarization benefit developing countries?

Dollarization occurs when a nation allows the currency of another nation to be used as a legal currency. That is partial dollarization. Full dollarization, while less frequent, occurs when a nation discontinues it's own currency and replaces it with the currency of another country. Most commonly the foreign currency is the US Dollar, but the Euro is used by a number of European countries that are not part of the European Union.

Review the Dollarization document provided, information in the textbook, as well as web based sources. A good approach is to examine a specific country that has dollarized. Dollarization.doc

You then take the information you have learned and present it as a formal case study report. For this case a specific recommendation is not required. After a discussion of what dollarization is and the advantages and disadvantages of dollarization, you would conclude with a brief review of the conditions under which a country would benefit from dollarization. That becomes an implicit recommendation to dollarize when those conditions exist. Alternatively, if you conclude that dollarization is not a benefit, then you would explain why you recommend that nations not dollarize.

Case Studies follow the following general format:

•An Introduction where you explain the situation and the decision(s) facing the firm. Most, if not all, of this information will be in the case.

•Alternatives: here you define terms as needed and identify the alternative available to the firm.

•Evaluate the alternatives: discuss the advantages and disadvantages of each of the relevant alternatives.

•Recommendation and conclusion: select one of the alternatives as your recommendation. Support your recommendation with information used in your case analysis.

Provide specific and detailed recommendations.

•Use additional resources as needed, but remember to cite and reference them properly using APA style. (Apa.pptx).

•In a case you apply your knowledge of the material being covered in the class. As well as using your analysis skills as applied to the case information.

Note: For a short case such as this one, the Alternatives discussion can be combined with the Evaluation discussion as single section of your case.

Be sure to include APA formatted citations and references. Citations in the body of your case and references are required. (Apa.pptx).

Your final case is due by 11:59:59 pm Sunday, and your case should consist of a miminum of 500 words.

Post your work to the Reseach Forum board by clicking on Create New Thread. Do not upload it as a Word file. You can edit your work here throughout the week, if you want to modify your case in response to feedback or other new information. The purpose of this exercise is to demonstrate your understanding of the material.

Remember to include a word count at the bottom of your case.

Now click on the Case Study text link above and go to the research forum. You can start a new thread by clicking on the Create Thread button at the top. You can also respond to an existing post by clicking the Respond button at the bottom of the post.

Attachments:
application/vnd.openxmlformats-officedocument.wordprocessingml.document iconeco_wk_3_case_study-8.docx