Answer to Question #326679 in Microeconomics for Lily Hips

Question

Use micro (and relevant macro) economic analysis to justify your decision of relocating your business from one country to a particular country.

Answer 1

The microeconomic analysis will include the estimation of contribution and cost of labour and capital into the production of unit in my business. The relevant macroeconomic analysis will include the estimation of prices for labor (wage) and capital (interest rate) in different countries. If my business needs more labour, I will relocate it to the country with cheap labour cost, for example China