2. let us keep the Malaysian and Japanese wage constant and change the exchange rate. w w . the exchange rate is 1 yen =0.6 Ringgit or 1R= 1:66Yens. Wage rate in Japan (W JAPAN)= 8 Yens Wage rate in Malaysia (W MALAYSIA)= 1 Ringgit Calculate prices again. Japan (Yen) Malaysia (Ringgit) Malaysia (Yen) Price of Car Price of Steel Can Japan compete with Malasia under these circumstances? Hint calculate in terms of vens and compare it with the productivity difference. How much more productive is Japan over Malaysia in the car sector? What is the difference in their wages in terms of yens? w w w What are the determinants of competitiveness? What are the determinants of comparative advantage? Are they the same thing? wwwwwwwww . 2. let us keep the Malaysian and Japanese wage constant and change the exchange rate. w w . the exchange rate is 1 yen =0.6 Ringgit or 1R= 1:66Yens. Wage rate in Japan (W JAPAN)= 8 Yens Wage rate in Malaysia (W MALAYSIA)= 1 Ringgit Calculate prices again. Japan (Yen) Malaysia (Ringgit) Malaysia (Yen) Price of Car Price of Steel Can Japan compete with Malasia under these circumstances? Hint calculate in terms of vens and compare it with the productivity difference. How much more productive is Japan over Malaysia in the car sector? What is the difference in their wages in terms of yens? w w w What are the determinants of competitiveness? What are the determinants of comparative advantage? Are they the same thing? wwwwwwwww