[eng] Ecuador has recently adopted the US dollar as legal tender. Salvador is on the verge of doing so; Guatemala and Costa-Rica are attempting at the same substitution to their own currency. But, the prospect is now more general. In other parts of the world, the dollarization progresses, too;...

This paper shows how, in a duopoly framework, uncertainty may provide an incentive for multinational production. Given its sequential nature, foreign direct investment can play a strategic role because, by establishing plants in more than one country, it enables the firm to relocate production...