Do your calculations suggest the international economy is fair or unfair?

A popular brand of coffee in New York—at least in the affluent neighborhoods of Manhattan—is Illy. Illy is an Italian brand of coffee. Coffee cannot be grown in Italy because the climate of the country does not permit it. Instead, representatives of the company buy coffee beans in select countries of Latin America, ship the bagged beans to Italy, where they are sorted, roasted, ground (usually), packaged, and then shipped world-wide, including to New York, and, even, to cities throughout Latin America. A can of Illy coffee contains 8.8 ounces of coffee and usually sells in New York for \$13.99. Find the current price of coffee on the international market. (Coffee prices are usually quoted for 100 pounds, but it should thus be easy for you to calculate the price per pound of coffee.) Compute the “value” of the coffee in the Illy can, and then compute the amount of the selling price of the can that goes to 1) Latin American producers of the coffee, and 2) the amount that goes to the Italians who package it and the Americans who sell it. You may “round” numbers to simplify your calculations.

Many like to add sugar to their coffee. In affluent neighborhoods of Manhattan, it is common to use sugar cubes. The Food Emporium on Madison Avenue and 87th Street sells only one brand of sugar cubes: La Perruche. The box contains 1.1 pounds of pure cane sugar. It is imported from France and sells for \$6.99. Sugar cane cannot be grown in France because the climate of the country does not permit it. Instead, representatives of the company buy cane sugar from countries in Latin America and Africa. The cane sugar is shipped to France, where it is pressed into cubes (not a difficult or expensive task), and then shipped world-wide, including to New York. Ascertain the price of sugar on the international market. Compute the “value” of the sugar in the La Perruche box, and then compute the amount of the selling price of the box that goes to 1) Latin American or African producers of sugar, and 2) the amount that goes to the French who package it and the Americans who sell it. Again, you may “round” numbers to simplify your calculations.

Illy is the surname of the family that owns the company. La Perruche is the French word for parakeet.

Do your calculations suggest the international economy is fair or unfair?

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