All categories

3 years ago

How can exchange rates change to reduce the wage differential between countries

Business

1 answer:

andrey2020 [161]3 years ago

4 0

Answer:

The exchange rate is the value for which one currency can be exchanged for another. Thus, for example, 20 Mexican pesos are needed to acquire an American dollar.

Technically, it could happen that a country changes its exchange rate with respect to a hard currency (such as the Dollar or the Euro) through fixed exchange rates, in order to increase the value of the salaries of its citizens, measured in international currencies. For example, if the Mexican government fixed a parity between the dollar and the peso of value 1 to 1, the minimum wage of Mexicans would go from being worth $ 215 to multiplying by 20, that is, to $ 4,300.

Now, in practice, this situation is practically impossible, since it would imply a monetary modification in the country that makes the adjustment, since otherwise it would imply an unprecedented inflationary peak.

You might be interested in

The opportunity cost of attending college is likely to be highest for a high school graduate Choose one: A who is very intellige

Valentin [98]

Answer:

B. who can immediately take over the family business

Explanation:

Option A is wrong because opportunity cost is not related to intelligence.

Option C is not correct because a high school graduate and a college attending student can access to student loans.

The family's wealth can not be a factor in terms of opportunity cost of attending college or a high school graduate. Therefore, option D is incorrect.

Option B is correct as a college attending student cannot take over the family business. So, it is his opportunity cost. On the other hand, a high school graduate can take over the business.

8 0

2 years ago

The mission statement of your business should contain all of the following elements except the

Zarrin [17]

C. expected profit margins
the mission statement provides information about the company as to who, why and how they plan to operate

7 0

2 years ago

Read 2 more answers

Q 9.37: when should the gross profit method of inventory valuation not be used because it is invalid?

rusak2 [61]

At the end of given period the gross profit method is required to estimate inventory.The valuation become invalid when the following are not available.the value for the beginning of inventory,records of purchase made, the total sale during the period and the gross profit margin.

5 0

3 years ago

What is an opportunity cost

xxMikexx [17]

Answer:

Explanation:

Opportunity cost is the valje of the next best alternative forgone when a choice is made.

7 0

2 years ago

Assume there are 100 suppliers of widgets in the widget market. Half of these suppliers supply 35 widgets to the market each, a

Bess [88]

Answer:

Total widgets supplied in the market will be 4000

So option (d) will be correct answer

Explanation:

We have given total number of suppliers = 100

It is given that half of the suppliers supply 35 widgets

So 50 supplier supply 35 widgets each

So total number widgets supplied by 50 supplier = 50×35 = 1750

A quarter, that is 25 supplier supply 40 widgets

So widgets supplied by 25 supplier = 25×40 = 1000

And other quarter, that is 25 supplier supply 50 widgets each

So widgets supplied by 25 supplier = 25×50 = 1250

So total widgets supplied in the market will be = 1750+1000+1250 = 4000

So option (d) will be correct answer

5 0

3 years ago

How can exchange rates change to reduce the wage differential between countries​

How can exchange rates change to reduce the wage differential between countries