Question: 1. If a computer project takes 6 months, how much does it cost in terms of acomputer programmer's salary to complete the project in the

1. If a computer project takes 6 months, how much does it cost in terms of acomputer programmer's salary to complete the project in the United States?
2. If that same project takes two years to complete in India, how much does itcost in terms of a computer programmer's salary to complete the project in India?
3. Which country has an absolute advantage? Why? Provide evidence to support the answer.
4. Which country has a comparative advantage? Why?
5. If the average annual salary of a computer programmer in the United Stateswere $100,000, which country would have a comparative advantage? why?
6. What are the advantages for a country to specialize?
7. How do trade restrictions affect comparative advantage?

Scenario:
The average salary of a computer programmer is $70,000 in the United States. Acomputer programmer with the same skill level costs $20,000. A company isconsidering outsourcing the work overseas to India. It takes the computerprogrammer based in the United States 6 months to complete the project. Ittakes the computer programmer based in India 2 years to complete the sameproject.

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1 The USA the programmer uses less period to complete the project 6hours India the programmer uses more period to complete the project 2 years 70000 6 ... View full answer

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