Ask Question
24 April, 23:39

A worker in Thailand can earn $12 per day making cotton cloth on a hand loom. A worker in the United States can earn $82 per day making cotton cloth with a mechanical loom. What is the likely explanation for the difference in wages?

+1
Answers (1)
  1. 25 April, 02:29
    0
    The capitalization rate per worker in the US is much greater than in Thailand.

    Explanation:

    What makes the possiblity for the US citizen to earn more for the same job is their capitalization rate. The US has a much greater capital per worker than Thailand thus, the productivity of labor is much higher.

    The workers are paid based on the production rather than personal effort this means, the Thai worker may be more strong and skillfull than US worker as it does it at hand but that, is a problem for the worker as with proper equipment it will make more cloth and therefore more goods are produced more value and a higher wage hourly rate is achieved.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “A worker in Thailand can earn $12 per day making cotton cloth on a hand loom. A worker in the United States can earn $82 per day making ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers