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a firm is considering moving from the united states to mexico. the firm pays its u.s. workers $10.00 per hour. currently, u.s. workers have a marginal product of 25 units, whereas mexican workers have a marginal product of 2.5 units. in order for the firm to reduce its wage cost per unit of output by moving to mexico, the wages in mexico must be below $ per hour

Respuesta :

From the question, we can see that the productivity in the United States is (45/9) = 5 times higher than that of Mexico.

How are employees in Mexico treated?

Workers in Mexico are shielded against discrimination on the basis of age, gender, handicap, socioeconomic and marital status, race, national origin, sexual orientation, and religion. Protections are available before, during, and after employment.

What professions held immigrants from Mexico?

The majority of the Southwest's businesses, including ranching and mining, are dominated by immigrants from Mexico and their offspring. For immigrants from Mexico, the expanding train system in America was particularly significant. Mexican immigrants were historically used by the railroad sector as a source of inexpensive labor.

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