Suppose you are given the following information. . WUS-wage rate in the U.S. WC - wage...
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Suppose you are given the following information. . WUS-wage rate in the U.S. WC - wage rate in China (WUS/E WC) - relative wage ratio (Bushels/Worker in the U.S.) / (Bushels/Worker in China)- relative productivity of the U.S. in wheat . . . - E the exchange rate between the U.S. dollar and Chinese yuan (E=$0.14 indicates that 0.14 dollars by 1 yuan or $1 can buy 7.143 yuan) Given this information, I can say that the United States can potentially lose its comparative advantage in wheat if the ratio of the average wage rate in the U.S. (WU) to the average wage rate in China (E*WC) is greater than the US's relative productivity in wheat. It is true It is not true I need more information to provide an answer O The opposite of what is concluded is true Suppose you are given the following information. . WUS-wage rate in the U.S. WC - wage rate in China (WUS/E WC) - relative wage ratio (Bushels/Worker in the U.S.) / (Bushels/Worker in China)- relative productivity of the U.S. in wheat . . . - E the exchange rate between the U.S. dollar and Chinese yuan (E=$0.14 indicates that 0.14 dollars by 1 yuan or $1 can buy 7.143 yuan) Given this information, I can say that the United States can potentially lose its comparative advantage in wheat if the ratio of the average wage rate in the U.S. (WU) to the average wage rate in China (E*WC) is greater than the US's relative productivity in wheat. It is true It is not true I need more information to provide an answer O The opposite of what is concluded is true
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Related Book For
An Introduction to the Mathematics of financial Derivatives
ISBN: 978-0123846822
2nd Edition
Authors: Salih N. Neftci
Posted Date:
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