Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. If a computer project takes 6 months, how much does it cost in terms of acomputer programmer's salary to complete the project in the

1. If a computer project takes 6 months, how much does it cost in terms of acomputer programmer's salary to complete the project in the United States?
2. If that same project takes two years to complete in India, how much does itcost in terms of a computer programmer's salary to complete the project in India?
3. Which country has an absolute advantage? Why? Provide evidence to support the answer.
4. Which country has a comparative advantage? Why?
5. If the average annual salary of a computer programmer in the United Stateswere $100,000, which country would have a comparative advantage? why?
6. What are the advantages for a country to specialize?
7. How do trade restrictions affect comparative advantage?

Scenario:
The average salary of a computer programmer is $70,000 in the United States. Acomputer programmer with the same skill level costs $20,000. A company isconsidering outsourcing the work overseas to India. It takes the computerprogrammer based in the United States 6 months to complete the project. Ittakes the computer programmer based in India 2 years to complete the sameproject.

Follow the paper standards in developing your responses and submit your answersin a Word document to your instructor via e-mail. Be certain to developthoughtful answers that applyconcepts you learned in the chapter readings and the lectures.

Step by Step Solution

3.42 Rating (158 Votes )

There are 3 Steps involved in it

Step: 1

1 The USA the programmer uses less period to complete the project 6hours India the programmer uses more period to complete the project 2 years 70000 6 ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

College Physics

Authors: Raymond A. Serway, Jerry S. Faughn, Chris Vuille, Charles A. Bennett

7th Edition

9780534997236, 495113697, 534997236, 978-0495113690

More Books

Students also viewed these Accounting questions

Question

4.8 Describe ways of understanding and treating PTSD.

Answered: 1 week ago