After trade ;Rate of interest country A il kuravum country B il koodthalum aayrikumo??? Athayath, Country A-Wage increases,Rate of interest decreases,Price increases Country B- Wage decreases,rate of interest increases,price decreases Ingane ano after trade il sambavikunnath??? Athoru confusion pole 😢
Jasna...After trade the wage level and rate of interest will reach to the same level... How it reached to same level is explained in the theory. For Eg.... Initially country A 's wage level is= 100 [because ss of labour is high] Country B's wage level=. 150 [because ss of labour is less] Once trade starts the labourers from country A will move to country B where they will get high wage . Finally the wage rate of both countries would be same... Here in this example u can imagine it in this way ... Country A's wage level increased to 125/- and country B's wage level decreased and came to the level of 125/- Hope it's clear Pls watch from 7.55 of video waytosuccessm@gmail.com
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After trade ;Rate of interest country A il kuravum country B il koodthalum aayrikumo???
Athayath,
Country A-Wage increases,Rate of interest decreases,Price increases
Country B- Wage decreases,rate of interest increases,price decreases
Ingane ano after trade il sambavikunnath???
Athoru confusion pole 😢
Please reply 😢😢😢😢😢
Jasna...After trade the wage level and rate of interest will reach to the same level...
How it reached to same level is explained in the theory.
For Eg....
Initially country A 's wage level is= 100 [because ss of labour is high]
Country B's wage level=. 150 [because ss of labour is less]
Once trade starts the labourers from country A will move to country B where they will get high wage . Finally the wage rate of both countries would be same...
Here in this example u can imagine it in this way ... Country A's wage level increased to 125/- and country B's wage level decreased and came to the level of 125/-
Hope it's clear
Pls watch from 7.55 of video
waytosuccessm@gmail.com
Thank you mam❤
All the best..👍