Still remember the story of China and Bangladesh discussed in class? Productivity in Bangladesh is only...

 

 

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Still remember the story of China and Bangladesh discussed in class? Productivity in Bangladesh is only 28% of China's on average, but the productivity gap is closed in apparel. In apparel, productivity in Bangladesh is about 77 percent of China's. The situation is simplified in the following unit labor hour requirements. Unit labor hour requirements China Bangladesh Apparels 10/unit 13/unit Other goods 10/unit 39/unit What is the hourly wage in China and Bangladesh? In view of the much higher wage in China, explain why China is still possible to export something to Bangladesh. (2 marks) Still remember the story of China and Bangladesh discussed in class? Productivity in Bangladesh is only 28% of China's on average, but the productivity gap is closed in apparel. In apparel, productivity in Bangladesh is about 77 percent of China's. The situation is simplified in the following unit labor hour requirements. Unit labor hour requirements China Bangladesh Apparels 10/unit 13/unit Other goods 10/unit 39/unit What is the hourly wage in China and Bangladesh? In view of the much higher wage in China, explain why China is still possible to export something to Bangladesh. (2 marks)

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To calculate the hourly wage in China and Bangladesh we can compare the unit labor hour requirements ... View the full answer