Assume that the worldwide profit breakdown for Ford is 85 percent in the USA, 5 percent in Japan, and 10 percent in the rest of the world. On the other hand, the worldwide profit breakdown for Toyota is 40 percent in Japan, 35 percent in the USA, and 25 percent in the rest of the world. Earnings per share are $5 in the USA, $8 in Japan, and $10 in the rest of the world for both companies.

(a) What are the weighted average earnings per share of Ford and Toyota?

(b) Which company is likely to have the international competitive advantage?