You own an investment firm in Sydney, Australia. One of your best trading analysts is offered...

 

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You own an investment firm in Sydney, Australia. One of your best trading analysts is offered a job position in Barcelona, Spain. The wage for the Spanish job is EUR154076 per year. The price level in Spain is EUR12611. The price level for an equivalent basket of goods in Australia is AUD10359. The current spot rate is EUR1.1543/AUD. All else equal, how much do you need to pay your employee to ensure she is at least as well of as when she would take the job in Spain? You own an investment firm in Sydney, Australia. One of your best trading analysts is offered a job position in Barcelona, Spain. The wage for the Spanish job is EUR154076 per year. The price level in Spain is EUR12611. The price level for an equivalent basket of goods in Australia is AUD10359. The current spot rate is EUR1.1543/AUD. All else equal, how much do you need to pay your employee to ensure she is at least as well of as when she would take the job in Spain?

Answer rating: 100% (QA)

To ensure that your employee is at least as well off as when she would take the job in Spain you nee... View the full answer