User Account

All Pages

Why might relative wages for efts be higher in foreign

Assignment Help Business Management
Reference no: EM131449193

Suppose two countries, Home and Foreign, produce a final good using five stages of production: research, manufacturing, assembly, marketing, and distribution.  Each stage uses both efts and newts as inputs.  The stages can be ranked from most eft-intensive to most newt-intensive as follows: marketing, research, assembly, distribution, and manufacturing. 

Suppose wages for both efts and newts are higher at Home, but that the relative wage for efts is higher in Foreign:

(Wage efts / Wage newts)^foreign > (Wage efts / Wage newts)^Home

1. Why might relative wages for efts be higher in Foreign?  Explain using relative supply and relative demand of efts to newts.

2. Suppose Home offshores three stages of production to Foreign.  If trade costs are uniform across stages of production, which stages will be offshored?  Explain. If trade costs rise, such that one less stage is offshored to Foreign, which stage will it be?  Explain.

3. What is the effect of the reduction in offshoring on the relative demand for efts in the Home country?  In Foreign?  What is the effect on the relative wages of efts to newts in each county? Explain.

4. Does reduced offshoring increase inequality between efts and newts within the two countries, decrease inequality, or is more information required? Explain.

Reference no: EM131449193

Questions Cloud

Discuss about the consumer decision making process : A firm has an overall defined within the organizational objectives. The marketing plan must lay strategies aligned to the companies objectives for firm to grow
Competitive market for automobiles : Consider a monopolistically competitive market for automobiles. N symmetric firms provide differentiated varieties of cars, with each firm producing a single.
Show that given equations are matingales : Show that the following are martingales.
What is the quarterly expected return for investment : What is the quarterly expected return for investment B?
Why might relative wages for efts be higher in foreign : Why might relative wages for efts be higher in Foreign? Explain using relative supply and relative demand of efts to newts.
Identify specific areas in which your philosophies align : Identify specific areas in which your values and philosophies align with and diverge from the values and philosophies of student affairs.
Expected to make annual cash flows forever : You own a store that is expected to make annual cash flows forever.
Assume that sales are not affected by the tighter credit : Assume that sales are not affected by the tighter credit.
Advise parrotfish limited on the need to disclose the sales : ACT B408 Advanced Financial Reporting and Analysis Assignment. Advise Parrotfish Limited on the need to disclose the sales information

Reviews

Write a Review

Business Management Questions & Answers

  Recommend company to deal with your communication systems

Recommend the company to deal with your suggested communication systems by submitting a detailed design report in the form of a network trial environment for mail server communication.

  Provide existing or proposed geographic scope of the busines

Provide the existing/proposed geographic scope of the business.

  Soft systems methodology

Why are approaches such as the Soft Systems Methodology, the Socio-Technical Approach and Business Process Reengineering relevant to IS project managers?

  Identify the drivers of your tbl policy and practices

identify the drivers of your TBL policy and practices, and I'd like to hear how you would measure your performance in this area in terms of effectiveness. I'd like for you to also identify a framework in terms of how TBL could be advanced in a glo..

  How does the interviewee handle change management

How does the interviewee handle change management

  Discuss about procter & gamble company''s ipo

Discuss about Procter & Gamble Company's IPO.

  Does a market-based economic system need to be monitored

Currently Australian consumers are paying off their debts and not spending. Using the simple Keynesian model to assess the implications for equilibrium GDP and the level of savings of an increase in the savings function.Conversely what would happe..

  Explain the nature of the problem that you discovered

In summary terms, explain the nature of the problem that you discovered, including why it is a problem, the key facts involved, and the impact the problem is having on the business

  Environmental policy an ems, and an emp

Explain what is the relationship among an environmental policy, an EMS, and an EMP and provide an example to show the importance of this relationship.

  Different forms of alternative dispute resolution

Explain the origins of the U.S. judicial system and how the judicial system fits into society -- including business. Differentiate the federal court structure from your state's court structure. Discuss the concept of judicial review. Describe the dif..

  How do organizations behave and why

The concept of rationality, especially in an organizational setting, is well established. Yet, it is possible that assumptions about rationality create blind spots concerning social forces that may affect IS innovation and change in an organization. ..

  By how much does required return on the riskier stock exceed

Stock R has a beta of 1.5, Stock S has a beta of 0.75, the expected rate of return on an average stock is 13 percent, and the risk-free rate of return is 7 percent.- By how much does the required return on the riskier stock exceed the required retu..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd