International Economics data analysis: Please read this document thoroughly

Consequences for infectious diseases arise from intensified trade in goods and services. This can be observed in the trends towards globalization of the food industry for example. Over recent decades, huge increases in international trade have changed the availability of food products, particularly for inhabitants of high-, middle-, and low-income countries. Consequently, several individuals come into contact with the food through manufacturing, packaging, handling, and shipment thereby increasing the risks of the transmission of infectious diseases. In this exercise we are going to focus on the relationship between globalization and infectious diseases. Specifically, with focus on the 2009 H1N1 Pandemic, we will study the nexus between globalization and communicable diseases. We will utilize a combination of information from the Center of Disease Control (CDC), data from the World Development Indicators, and related academic articles. This will be the structure of the study.

1. Familiarization with the Global Problem: First, we will familiarize ourselves with the source of the 2009 H1N1 pandemic and present a brief summary of the timeline of this pandemic. More precisely, we will identify its origin, timeline, and general statistics related to the number of infections and deaths in its early spread. We will also try to understand when and how it hit the United States. To this end, we will use verified and “accurate” data from the Center for Disease Control (CDC) website. The key resource here is from the link below: https://www.cdc.gov/flu/pandemic-resources/2009-h1n1-pandemic.html. The learning goal here is not to simply copy and paste full sentences from this page. Instead, you are to read the most essential part of this information that will help you answer the questions that follow. Additionally, I will provide you with an article to further help the discussion of Globalization and infectious diseases. To this end, do NOT simple copy and paste from this page and the article that will be provided. Push yourself to learn by explaining what you read from the article in your paper.

2. Data Analysis: The data analysis component will offer us an opportunity to look at the relationship between infectious diseases and globalization from an empirical perspective. Specifically, we can use the H1N1 pandemic that spanned 2009-2010 as a case study to examine the nexus between globalization and infectious disease. We will focus on data from the World Development Indicators (WDI) to answer a few data driven questions with regards to this relationship. You already know how to work with the WDI. However, I will include additional videos to help you better work navigate the WDI.

Please see the questions below. Your paper should be in an essay format and include all the relevant graphs from the questions. The data analysis comprises two sections with a total of four questions with sub-questions. Answer all questions.

Section 1. Familiarization with the Global Issue of H1N1 in 2009

Question 1: Provide a summary of the following: the origins of the H1N1 virus in 2009, its timeline, how it affected the United States and more generally, the global world health-wise and economically. Finally, when did the pandemic ended, and what has been done post the pandemic to ensure a safe global world? (NB: Your summary should be half a page or maximum one page long. A good answer should succinctly address the questions with facts that can be easily verified. Make sure to cite all relevant sources. Do not simply rely on Wikipedia.)

Section 2. Data Driven Questions for 2010 H1N1

Visit the World Development Indicator. Select the following three series “Cause of death, by communicable diseases and maternal, prenatal and nutrition conditions (% of total)”, “Imports of goods and services (% of GDP)”, and “Exports of goods and services (% GDP)” data for the 28 countries in Table 1 below for the year 2010:

TABLE 1: List of Countries for the Data Analysis (High- and Middle-income countries)

Antigua and Barbuda

2 Australia

3 Austria

4 Bahamas, The

5 Bahrain

6 Barbados

7 Brunei Darussalam

8 Canada

9 Chile

10 China

11 Czech Republic

12 Denmark

13 Iceland

14 Japan

15 Korea, Rep.

16 Kuwait

17 Lithuania

18 Mexico

19 Netherlands

20 New Zealand

21 Norway

22 Panama

23 Qatar

24 Singapore

25 Sweden

26 Switzerland

27 United States

28 Uruguay

After selecting this information, download the data into Excel, and use the data to answer the following questions.

Question 2: Using vertical or horizontal bar graphs, compare the “Cause of death, by communicable diseases and maternal, prenatal and nutrition conditions (% of total)” for the following 10 countries: Canada, Chile, China, Japan, Korea, Rep, Mexico, Qatar, Singapore, Sweden, and United States. From your graph, which countries rank the highest and lowest in terms of Cause of death by communicable diseases. Does this meet your expectations? Discuss why or why not.

Question 3. Recall from that we discussed in Chapter 1 (Patterns of Trade) of the course that “Openness of trade” is a result of globalization. Hence, we can use Openness of Trade to proxy for Globalization. Furthermore, to get a measure of “Openness of Trade”, we must sum the values from “Imports of goods and services services (% of GDP)” and “Exports of goods and services (% of GDP)”. To this end, create an additional variable in your excel file, which does the latter for all 28 countries and name it Openness. Once you create this variable, plot a vertical or horizontal bar graph and compare the level of openness for the following countries: Canada, Chile, China, Japan, Korea, Rep, Mexico, Qatar, Singapore, Sweden, and United States. Using your graph, discuss the level of openness across these countries.

Question 4. The key goal of this data analysis exercise is to try to investigate the nexus between Globalization and Infectious diseases. Answer the questions that follow:

I. Using your constructed data on Openness of Trade (as a proxy for globalization) and the “Cause of death, by communicable diseases and maternal, prenatal and nutrition conditions (% of total)” for all 28 countries in the sample, plot a scatter diagram in Excel with Openness of Trade on the x- axis and Cause of death, by communicable diseases on the y-axis. Include a linear trend in your diagram.

II. Briefly explain your results from the scatter diagram in part (ii). Can you conclude that seemingly, as openness increases, death from communicable diseases increases?

III. With regards to the ongoing COVID-19 crisis, what policy lessons can we learn from the H1N1 pandemic in 2009 to help slowdown the effects of COVID-19. (You can use this article: https://www.id.theclinics.com/article/S0891-5520(11)00037-7/pdf )

Resources

1. https://www.cdc.gov/flu/pandemic-resources/2009-h1n1-pandemic.html 2. https://www.who.int/tdr/publications/documents/seb_topic3.pdf

3. https://www.cdc.gov/h1n1flu/information_h1n1_virus_qa.htm#a

4. https://www.cdc.gov/h1n1flu/cdcresponse.htm

5. https://www.cdc.gov/flu/pandemic-resources/h1n1-summary.htm

Data for your analysis: https://databank.worldbank.org/source/world-development-indicators# All the data you need for your analysis:

• Cause of death, by communicable diseases and maternal, prenatal and nutrition conditions (% of total)

• Imports of goods and services (% of GDP)

• Exports of goods and services (% of GDP)

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Pedro – Hernandez Gable married a lovely young woman named Harriet and wanted to take her on an extravagant honeymoon to start their new life together as newlyweds. Pedro purchased traveler's emergency protection insurance before they took an extended around the world honeymoon. Hernandez- Gable took out this protection with a traveler’s insurance policy from Travails R US Inc. The insurance policy promised to pay, $ 2,000,000 coverage in the event of an accident in the event that a emergency medical evacuation was necessary due to an accident where it would be needed. On August 15, 2018, Pedro and his new wife, Harriet, were seriously injured in a car accident while on their honeymoon. When Hernandez-Gable’s parents found out about the accident, they immediately flew to the couple’s location. After Pedro’s parents arrived, it was determined that Pedro was not receiving adequate medical treatment and needed to be transported via air ambulance back to the United States for treatment. His parents paid for the transportation out of their own pocket at a cost of approximately $500,000. A few months after the accident, Pedro wrote a letter to his father stating he would repay the monies his father advanced on his behalf to get him evacuated to get better care. To formalize this promise, Pedro requested in the letter that his father sign the letter Thereafter, Pedro submitted a claim for reimbursement of his travel expenses.

     Traveler’s International argues that because Pedro’s parents signed the check and sent it directly to them, Pedro has no damages and, thus cannot sue them. The insurance company also states that Pedro’s father’s note indicates that the note is is not an enforceable contract against them (the insurance company) because they are not a party to that agreement either.

Issue: Was Pedro’s parents’ payment a novation that relieved the insurance company of their obligation under the traveler’s emergency protection policy?

Tara’s Treasures Inc. is a publicly traded company that develops, manufactures, and distributes professional quality exercise equipment. The firm was established in 1965 in Burlington, Vermont and went public in 1975. Sales were initially from only the Northeast region of the United States, but since going public the company has grown significantly and now supplies exercise equipment in all fifty states. In 2015 the company reported a market capitalization of $950 million. Recently, the company has decided to enter the INTERNATIONAL Market in order to enhance their growth potential. Tara’s Treasures, Inc.’s CFO, has been with Tara’s Treasures, Inc. for 20 years and has held the position of CFO for the past 5 years. Your Role: Assume that you are the Financial Accounting Controller for Tara’s Treasures, Inc. You report directly to the CFO. Recently, the CFO came to you with an article that he found on CFO.com that deals with adoption of International Financial Reporting Standards (IFRS). The CFO wants to know more about the implications of IFRS adoption. Specifically, he has asked you do some research and find answers to the following questions: 1. What are the primary benefits of IFRS adoption for US firms in general? Describe at least three benefits. 2. What are the primary costs of IFRS adoption for US firms in general? Describe at least three costs. 3. The CFO does not understand how IFRS differs from current US GAAP. Briefly describe the differences between GAAP and IFRS and in support of your analysis include two areas of Tara’s Treasures financial statements that could be reported differently under IFRS. 4. Based on your research, do you think that Tara’s Treasures should be in favor of or opposed to IFRS adoption and is there any plans they should be making to prepare for the consequences.

Directions: Determine whether each sentence is a run-on, is a comma splice, or is punctuated correctly.

Directions: Determine whether each sentence is a run-on, is a comma splice, or is punctuated correctly.

Q.2 ABC Ltd., has been facing cash shortage problem for many years. You have just joined the company and made the proposal to prepare cash budget for controlling of cash shortage problem. Management has given you the green signal to prepare the cash budget and made the projection for requirement of cash through commercial bank channel in the coming period. The following information were gathered for preparing the cash budget. 1. Sales budgets November, 2019…………………………. Rs.200,000 December, 2019…………………………… 300,000 January, 2020…………………………….. 400,000 February, 2020…………………………… 500,000 March, 2020……………………………….. 600,000 All sales are made on credit basis and customers follow the following patter to pay; A) 40 % pay in the month of sales. B) 50 % in the following month of sales. C) 10 % pay in the second month of sales. 2. Purchase budgets 3. Purchases are made equal to 60 % of the respective month sales at beginning of the month. 50% of purchase amount is paid in the month of purchases and 50% in the following month of purchases 4. Cash operating expenses per month is estimated Rs.80,000. 5. Dividend is expected to be paid Rs.100,000 in the month of January, 2020. 6. Tax is to be paid Rs.50,000 in the month of march, 2020. 7. A new plant costing Rs. 250,000 to be purchased in the month of Feb.,2020. 8. Cash on hand on 1st January, 2020 is Rs.100,000. 9. A minimum cash balance of Rs.150,000 to be maintained from 31st January,2020 on ward, company has made arrangement with the local bank a line of credit to meet its cash requirement and if excess cash available it would be paid to bank to pay the loan. Required: Prepare a cash budget for the month of January, February, March, 2020. (Marks-10)

1)    Use the below table of share price for TSLA and index level for the S&P 500 for the CAPM questions that follow related to TSLA. You can copy this table and paste it completely into Excel to avoid typing it out. Calculate the beta of TSLA.  

2) Using the beta you just calculated above, a risk free rate of 0.70%, and a market return of 5.5%, what is the required rate of return for TSLA?

3) If the current share price of TSLA is $380, it pays no dividend, and the consensus estimated share price in one year is $400, what is the estimated return for this stock? Should you invest in it based on comparing the estimated return you just calculated to its required return?  

Jen and Larry’s Frozen Yogurt Company

     In 2019, Jennifer (Jen) Liu and Larry Mestas founded Jean and Larry’s Frozen Yogurt Company, which was based on the idea of applying the microbrew or microbatch strategy to the production and sale of frozen yogurt. Jen and Larry began producing small quantities of unique flavors and blends in limited editions. Revenues were $600,000 in 2019 and were estimated to be $1.2 million in 2020.

     Because Jen and Larry were selling premium frozen yogurt containing premium ingredients, each small cup of yogurt sold for $3, and the cost of producing the frozen yogurt averaged $1.50 per cup. Administrative expenses, including Jen and Larry’s salary and expenses for an accountant and two other administrative staff, were estimated at $180,000 in 2020. Marketing expenses, largely in the form of behind-the-counter workers, in-store posters, and advertising in local newspapers, were projected to be $200,000 in 2020.

     An investment in bricks and mortar was necessary to make and sell the yogurt. Initial specialty equipment and the renovation of an old warehouse building in lower downtown (known as LoDo) occurred at the beginning of 2019. Additional equipment needed to make the amount of yogurt forecasted to be sold in 2020 was purchased at the beginning of 2020. As a result, depreciation expenses were expected to be $50,000 in 2020. Interest expenses were estimated at $15,000 in 2020. The average tax rate was expected to be 25% of taxable income.

1. Refer to the Mini Case above involving Jen and Larry’s Frozen Yogurt Company.
   1. Calculate the dollar amount of NOPAT if Jen and Larry’s venture achieves the forecasted $1.2 million in sales in 2020. What would NOPAT be as a percent of sales?
   2. Calculate the NOPAT breakeven point for 2020 in terms of NOPAT breakeven revenues for Jen and Larry’s venture. How many cups of frozen yogurt would have to be sold to reach NOPAT breakeven?

Jen and Larry’s Frozen Yogurt Company

     In 2019, Jennifer (Jen) Liu and Larry Mestas founded Jean and Larry’s Frozen Yogurt Company, which was based on the idea of applying the microbrew or microbatch strategy to the production and sale of frozen yogurt. Jen and Larry began producing small quantities of unique flavors and blends in limited editions. Revenues were $600,000 in 2019 and were estimated to be $1.2 million in 2020.

     Because Jen and Larry were selling premium frozen yogurt containing premium ingredients, each small cup of yogurt sold for $3, and the cost of producing the frozen yogurt averaged $1.50 per cup. Administrative expenses, including Jen and Larry’s salary and expenses for an accountant and two other administrative staff, were estimated at $180,000 in 2020. Marketing expenses, largely in the form of behind-the-counter workers, in-store posters, and advertising in local newspapers, were projected to be $200,000 in 2020.

     An investment in bricks and mortar was necessary to make and sell the yogurt. Initial specialty equipment and the renovation of an old warehouse building in lower downtown (known as LoDo) occurred at the beginning of 2019. Additional equipment needed to make the amount of yogurt forecasted to be sold in 2020 was purchased at the beginning of 2020. As a result, depreciation expenses were expected to be $50,000 in 2020. Interest expenses were estimated at $15,000 in 2020. The average tax rate was expected to be 25% of taxable income.

1. Jen and Larry believe that under a worst-case scenario, yogurt revenues would be at the 2019 level of $600,00 even after plans and expenditures were put in place to increase revenues in 2020. What would happen to the venture’s EBDAT?
2. Jen and Larry also believe that, under optimistic conditions, yogurt revenues could reach $1.5 million in 2020. Show what would happen to the venture’s EBDAT if this were to happen.

Below table2 shows monthly closing share prices (adjusted to include dividends) of 5 companies, and the adjusted closing prices for the ASX200 index. Table 1 is the dividends per share of the 5 companies in the past 5 years.

Calculate the average annual growth in dividends over the last five years. Use this information, along with Gordon’s Growth Model to estimate the implied expected return for each REIT at the current market price（use past 12 months as an example）. Show your analysis process.

From inception of operations to December 31, 2020, Metlock Corporation provided for uncollectible accounts receivable under the allowance method. The provisions are recorded, based on analyses of customers with different risk characteristics. Bad debts written off were charged to the allowance account; recoveries of bad debts previously written off were credited to the allowance account, and no year-end adjustments to the allowance account were made. Metlock’s usual credit terms are net 30 days.

The balance in Allowance for Doubtful Accounts was $114,400 (Cr.) at January 1, 2020. During 2020, credit sales totaled $7,920,000, the provision for doubtful accounts was determined to be $158,400, $79,200 of bad debts were written off, and recoveries of accounts previously written off amounted to $13,200. Metlock installed a computer system in November 2020, and an aging of accounts receivable was prepared for the first time as of December 31, 2020. A summary of the aging is as follows.

Based on the review of collectibility of the account balances in the “prior to 1/1/20” aging category, additional receivables totaling $52,800 were written off as of December 31, 2020. The 80% uncollectible estimate applies to the remaining $79,200 in the category. Effective with the year ended December 31, 2020, Metlock adopted a different method for estimating the allowance for doubtful accounts at the amount indicated by the year-end aging analysis of accounts receivable.

Prepare a schedule analyzing the changes in Allowance for Doubtful Accounts for the year ended December 31, 2020. Show supporting computations in good form. (Hint: In computing the 12/31/20 allowance, subtract the $52,800 write-off.)