Suppose that a firm is considering opening a plant on the moon, and the current exchange rate is 12 dollars per moon piece (mp). Also, the wage rate is 1.60 mp per hour. Suppose further that US workers can produce 620 unites per hour, while workers on the moon are expected to be able to produce 500 units per hour. Suppose that the US wage rate is $26.50 per hour. If the US managers want to become the location of choice for production, and they cannot lower their wage rate due to labor union agreements, what does the labor productivity in the US need to become? (rounded to one decimal place)

Suppose that a firm is considering opening a plant on the moon, and the current exchange rate is 12 dollars per moon piece (mp). Also, the wage rate is 1.60 mp per hour. Suppose further that US workers can produce 620 unites per hour, while workers on the moon are expected to be able to produce 500 units per hour. Suppose that the US wage rate is $26.50 per hour. If the US managers want to become the location of choice for production, and they cannot lower their wage rate due to labor union agreements, what does the labor productivity in the US need to become? (rounded to one decimal place)

Management, Loose-Leaf Version

13th Edition

ISBN:9781305969308

Author:Richard L. Daft

Publisher:Richard L. Daft

Chapter4: Managing In A Global Environment

Section: Chapter Questions

Problem 1SGB

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