The minimum wage in Mexico is less than $1.00 an hour. Does this make Mexican workers more cost-effective than U. S. workers? Explain

Yes, this makes Mexican workers more cost-effective than U.S. workers, keeping other things constant.

Explanation:

Minimum wage is the amount of money that an employee will get from his employer for working for an hour. This adds up to the total cost of the goods produced by the workers.

If the minimum wage of the workers in Mexico is less than the minimum wage received by the workers in the United States, it means that they are more cost effective and will lead to the production of the goods at a cheaper rate, keeping other things constant in the production process.

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