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You have 2 job offers from Frankfurt at 90,000 per year and from London at GBP110,000 per year. At spot rate, EUR$=1.12 GBP$=1.22 Which job

  1. You have 2 job offers from Frankfurt at 90,000 per year and from London at GBP110,000 per year.

At spot rate, EUR$=1.12

GBP$=1.22

  1. Which job should you take if you chose based on higher salary (without taking into account purchacing power parity)? Why?
  2. If the purchasing power parity holds at GBP/EUR1.18, which job yould you take? (

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