1. what are productivity-adjusted wages and why they enter the calculation of manufacturing costs in place of (unadjusted) wages? Please include the Ricardian model in your answer. 2. Your boss is confused by the graph of Manufacturing Cost Index, by country. Please explain how to interpret the graph and what the Manufacturing Cost Index captures. 3. Based on the Manufacturing Cost Index and other economic factors, which of the world’s top 25 export economies should you seriously consider for offshoring?

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