Why the Same Piece of Bread Is Cheaper in Latvia Than In Finland
It’s…tricky.
In the summer of 2016, I ate one of the biggest, best, and cheapest breakfasts of my life in a bakery in Belgrade, Serbia.
This led me to wonder why the Serbian baker earned less money for doing the same work than a Swiss baker, for example.
After all, had we been in Switzerland, I would have paid the baker five or six times what I paid in Serbia.
Why does how much you earn for a job depend on where the job is realized, if the efforts are the same?
That’s what we’re going to discuss in this article.
And the first thing we need to understand is that different economies have different values.
Value of the Economy
The value of an economy depends on what you can buy from it.
Let’s take the example of Kenya.
The Kenyan economy mainly exports tea, but tea isn’t valuable.
After all, you can also buy tea from India, China, Sri Lanka, Argentina, and unlike Japanese matcha, which is unique…
