Tootsie Roll Industries has two business segments, one for operations in the United States and one for operations in Mexico and Canada. The following information (in thousands) comes from a recent annual report.

Required:

a. Find the ROI for each segment for each year.

b. Find and analyze segment ROI by using the DuPont method.

1)Which of the following items would be listed on the US current account?
a) A house in the United States sold to a Canadian citizen;
b) a pair of shoes made in Spain, but sold in the United States;
c) tuition payments made by foreign citizens attending a university in the United States
d) a car made in Michigan (United States), but sold in Canada;
e) the value of Canadian government debt owned by US banks

2)Go to the website of the IMF: www.imf.org . What are some of the projects the IMF is currently working on?

3)If we expect our currency to appreciate with respect to the currency of our northern neighbour and the interest rates are the same in both nations, in which nation does it make sense for us to invest? Show your work.

4)What does a nation give up by having a fixed exchange rate? What do they get?

Using the same quantity of resources, the United States and Canada can both produce lumberjack shirts and lumberjack boots, as shown in the following table.

A. Calculate the opportunity cost of producing a lumberjack shirt in the United States and in Canada.

B. Use the information in the table above to explain the difference between absolute and comparative advantage. In your answer, you must correctly define absolute and comparative advantage.

C. Explain whether the United States and Canada will benefit from trade. If the countries benefit from trade, explain which country will produce lumberjack shirts and which will produce lumberjack boots.

D. If Canada has a technological innovation in shoe production that allows the country to produce 15,000 more boots at each production level described above, will Canada benefit from trade with the United States? Please explain your answer.

Assume that the United States and Cambodia both have similar demand functions and similar taste preferences. The United States however is capital abundant while Cambodia is labour abundant. Assume that the two countries produce only two goods: capital-intensive cars and labour-intensive shoes. Currently, the two countries are in the process of negotiating a bilateral free trade agreement (FTA). Part (a) Use the concepts of supply and demand to illustrate the situation of bilateral trade between the United States and Cambodia before the creation of their FTA. Note that before the creation of the FTA, both the United States and Cambodia use import tariffs. How can the Heckscher-Ohlin model be used to explain the positions taken by capital owners and labour owners in each country vis-à-vis a USA-Cambodia FTA. Students are recommended to use graphs in their answer. [7 marks] Part (b) If an FTA between the United States and Cambodia is created, according to the Heckscher-Ohlin model what will happen to the total welfare of each country? Specifically, use the concept of Production Possibility Frontier (PPF) to graphically show the changes in the welfare of both countries following the creation of their FTA. [5 marks]

How might you compare and contrast the organization of the healthcare systems of the United States, Germany, and the United Kingdom?

Innocent until proven guilty? In Japanese criminal trials, about 95% of the defendants are found guilty. In the United States, about 60% of the defendants are found guilty in criminal trials. (Source: The Book of Risks, by Larry Laudan, John Wiley and Sons) Suppose you are a news reporter following five criminal trials. (For each answer, enter a number.)

(a)

If the trials were in Japan, what is the probability that all the defendants would be found guilty?

What is this probability if the trials were in the United States?

(b)

Of the five trials, what is the expected number of guilty verdicts in Japan?

What is the expected number in the United Sates?

What is the standard deviation in Japan?

What is the standard deviation in the United States?

NO PLAGARISM

• Introduction: Describe economic indicators and briefly describe the United States economy. (can talk about covid-19 and at least one paragraph)

• Conclusion: Summarize the overall state of the United States economy. (can talk about covid-19 and at least one paragraph)

If the nations of the world were to suddenly cut off all trade with one another, what products might you no longer be able to obtain in United States? How would this affect businesses and the economy? Choose United States and identify the products it would need to do without.