Large numbers of Pakistani, Indian, Bangladeshi, and Philippine labor are working (mainly in low skilled jobs) in Arabian Peninsula countries (e.g., Qatar, Saudi Arabia, United Arab Emirates). Suppose that you are an Indian worker who could earn $1,000 annually at home and $3,000 in Saudi Arabia.
I. Compare the productivity of this worker at home and in Saudi Arabia.
II. Why might these productivities differ?
III. Often, a broker arranges visas for foreigners to work in Saudi Arabia. What is the maximum amount that an Indian worker might be willing to pay a broker to arrange a work visa for Saudi Arabia?

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The Answer of Large numbers of Pakistani, Indian, Bangladeshi, and Philippine labor are working (mainly in low skilled jobs) in Arabian Peninsula countries (e.g., Qatar, Saudi Arabia, United Arab Emirates). Suppose that you are an Indian worker who could earn $1,000 annually at home and $3,000 in Saudi Arabia.
I. Compare the productivity of this worker at home and in Saudi Arabia.
II. Why might these productivities differ?
III. Often, a broker arranges visas for foreigners to work in Saudi Arabia. What is the maximum amount that an Indian worker might be willing to pay a broker to arrange a work visa for Saudi Arabia?

Large Numbers of Pakistani, Indian, Bangladeshi, and Philippine Labor Are