If Australian workers are more productive than New Zealand workers, one would expect:

Question

Quizplus · Accepted Answer

If Australian workers are more productive than New Zealand workers, their output per hour would be higher. This would translate into higher profits for Australian firms, which could then afford to pay their workers higher wages. As a result, Australian wages would be expected to be higher than New Zealand wages. However, this may not necessarily lead to more trade between the two countries, nor would it necessarily mean that Australia would provide aid to New Zealand or impose more trade barriers.

If Australian Workers Are More Productive Than New Zealand Workers