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Why price levels of notradeables are lower in poorer countries? labor is cheaper in poor countries and is used intensively in producing non-tradable goods. non-tradable
Why price levels of notradeables are lower in poorer countries?
labor is cheaper in poor countries and is used intensively in producing non-tradable goods.
non-tradable goods will be cheaper in the poor countries than in the rich.
The productivity of non-tradables is the same across countries but the low productivity of tradebales will force the prices down for the poor countries.
It is caused by the Balassa-Samuelson effect.
All of the above.
None of the above.
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