What is the relative wage rate of operating zooland

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Suppose your firm is considering opening a plant in Zooland, the current exchange rate is $1 per 212 Tigers. The wage rate in Zooland is 1200 Tigers per hour. You know that in the U.S., workers can produce 120 units per hour, and you have been told that in Zooland, the workers produce 40 units per hour.

What is the "relative" wage rate (in $) of operating Zooland, after taking productivity differences into account?

Reference no: EM1386442

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