Say that the hourly cost to employers per German industrial worker was $44. The hourly cost to employers per U.S. industrial worker was $34.while the average cost per Taiwanese industrial worker was $2D. 1. Give three reasons why firms produce in Germany rather than in a low erw age country. 2. Germany has an agreement with other EU countries that allows people in any EU country ,including Greece and ltaly.which have lower wage rates . to travel and work in any EU country . including high -wage countries. Would you expect a significant movement ofworkers from Greece and Italy to Germany right away ? Why or why not? 3. Workers in Thailand are paid significantly less than workers in Taiwan. if you were a company CED . what other information would you want before you decided where to establish a new production facility 1' l. The first reason why firms prefer to produce in Germany rather than a lowerwage country because Germany has comparative advantage in technology. The second reason for producing in Germany is the availability of high level and permanently upgraded infrastructural facilities which reduces the overall cost of production of the good and thus increase productivity of the firm and make the firm profitable. The last reason is related to easy access to market and the size of the market for specific product. 2. i expect a significant movement ofworkers from Greece and Italy to Germany . because people always search for a higher level and slandard of living and prefer to be in the areas where the wage rate is high. Moreover. EU internal agreement makes easier the movement of people .and this fact promotes the movement from low wage countries such as Greece and Italy to high wage countries such as Germany. 3. Firstly .lwould check with the help of lawyers the economic laws acting in Thailand and the fulllment of laws .Then , I would concentrate on the level of technologies .infrastructures , and the availability of communication |{ways , internet. ports. and so on}. Finally. lwouid ask about the wages. cost of labor . and business environment of Thailand In order to decide whether to establish a new production facility in Thailand the CED will also concentrate on checking the formalities related to setting up industry in Thailand .level of technological growth in the country and whether the country is business friendly or not.]ust the cost of labor is bot sufficient option to establish a production facility in the country