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Author Question: Countries with high wages cannot export to low wage countries. Indicate whether the statement is ... (Read 91 times)

karen

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on: Jun 30, 2018
Countries with high wages cannot export to low wage countries.
 
  Indicate whether the statement is true or false

Question 2

What is the main problem with rules of origin?
 
  What will be an ideal response?


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wuly

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Reply #1 on: Jun 30, 2018
Answer to Question 1

FALSE
Explanation: Wages can be higher so long as productivity is at least as much higher.

Answer to Question 2

They increase transactions costs related to accounting process and to slowing trade at the border.


karen

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Reply 2 on: Jun 30, 2018
Gracias!

brbarasa

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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