The figure below shows the production-possibility curves of Canada (AB) and the rest of the world (CD). I1 and I2 are community indifference curves for Canada and the rest of the world. In the absence of trade, Canada consumes ________ bales of cotton and ________ bushels of wheat.

An American company sets up a joint venture to develop a mining operation in Tanzania. This is an example of _____

a. foreign direct investment b. portfolio investment c. hedging d. arbitrage

If 1,000 Mexican pesos could buy $1.00 U.S. in 2006 and $0.87 U.S. in 2010, it implies that _____

a. the dollar depreciated against the peso b. the peso appreciated against the dollar c. the dollar strengthened against the peso d. the peso strengthened against the dollar