International Trade

A housekeeper from the Philippines is contemplating immigrating to Singapore in search for higher wages. Suppose the housekeeper earns approximately $2000 annually and expects to find a job in Singapore worth approximately $5,000 annually for a period of three years. Furthermore, assume that living in Singapore is $500 more per year than at home

a.What can we say about the productivity of housekeepers in Singapore v.s. the Philippines? Explain.

b.What is the total gain to the housekeeper from migrating?

c.Is there a corresponding gain for the employer in Singapore? Explain.