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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.

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3 years ago

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2 years ago

Read 2 more answers

Mervon Company has two operating departments: mixing and bottling. Mixing occupies 27,235 square feet. Bottling occupies 14,665

BARSIC [14]

Answer:

The amount of maintenance costs allocated to each operating department is $159,900 to mixing and $86,100 to bottling

Explanation:

In order to determine the amount of maintenance costs allocated to each operating department we would have to calculate first the percentage of area for each deparment as follows:

Particular Area in square feet %

mixing 27,235 65

bottling 14,665 35

Total Area 41,900 100

Therefore, if the maintentance cost is $246,000, the amount of maintenance costs allocated to each operating department is as follows:

Particular % Allocation of expense

mixing 65 159,900=246,000×65/100

bottling 35 86,100=246,000×35/100

100 246,000

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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