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2. A machinist in Latvia is considering moving to Poland in search of higher paying work. Assuming her skills are equal to current Polish machinists,
2. A machinist in Latvia is considering moving to Poland in search of higher paying work. Assuming her skills are equal to current Polish machinists, she expects to earn an annual salary of 50,000 in Poland versus her current salary of 35,000 in Latvia. She expects to stay in Poland for five years. Assume that her annual cost of living is 12,000 higher in Poland than in Latvia. (10 pts) a. Discuss the machinist's productivity in Poland versus Latvia. How much more productive must she be? Consider her change in salary in real terms. What does this imply about the availability of capital in the machining industry in Poland versus Latvia? b. What is the total Euro gain for the machinist, in real terms, if she stays five years? c. How does the machining company in Poland gain if they hire her
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