Sarah and Alice live and work in different regions of the same country. Each is considering a move to the most economically-prosperous region of this country (referred to below as the “destination region”). Assume that Sarah and Alice are identical in every way except for the following differences:Sarah’s home region is next to the destination regionSarah’s home region is culturally distinct from all other regions in the countryAlice’s home region is roughly 2000 km away from the destination regionSarah is 25 years old, while Alice is 35The unemployment rate in Sarah’s home region is 6.5%The unemployment rate in Alice’s home region is 8%The unemployment rate in the destination region is 5% a) Given this information, describe two reasons why we might expect Sarah to be more likely than Alice to migrate to the destination region.b) Given this information, describe two reasons why we might expect Alice to be more likely than Sarah to migrate to the destination region.

Note- as in the point distance of Alice home region to destination region is mentioned but for…

Answered: Given this information, describe two…

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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Sarah and Alice live and work in different regions of the same country. Each is considering a move to the most economically-prosperous region of this country (referred to below as the “destination region”).

Assume that Sarah and Alice are identical in every way except for the following differences:

Sarah’s home region is next to the destination region
Sarah’s home region is culturally distinct from all other regions in the country
Alice’s home region is roughly 2000 km away from the destination region
Sarah is 25 years old, while Alice is 35
The unemployment rate in Sarah’s home region is 6.5%
The unemployment rate in Alice’s home region is 8%
The unemployment rate in the destination region is 5%

a) Given this information, describe two reasons why we might expect Sarah to be more likely than Alice to migrate to the destination region.

b) Given this information, describe two reasons why we might expect Alice to be more likely than Sarah to migrate to the destination region.

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