Trade increases among two countries can take two forms: each country becomes more specialized and therefore exports and imports different goods (e.g. France sells wine and Germany sells beer), or both countries compete more widely in a range of similar goods (e.g. France and Germany sell cars to each other).

A) How do these alternatives affect the OCA (optimum currency area) criteria?

B) If France and Germany are known to be strongly following the second option, what other minimum conditions are required to establish that France and Germany form an OCA?