Why is the price of a big mac not the same in every country

Assignment Help Finance Basics

Reference no: EM131424263

Purchasing Power Parity One of the more famous examples of a violation of absolute purchasing power parity is the Big Mac Index calculated by The Economist . This index calculates the dollar price of a McDonald's Big Mac in different countries. You can find the Big Mac Index by going to www.economist.com . Using the most recent index, which country has the most expensive Big Macs? Which country has the cheapest Big Macs? Why is the price of a Big Mac not the same in every country?

Reference no: EM131424263

Questions Cloud

Probability that the twins will be in the middle two places : Suppose the family includes one set of twins, and all arrangements are equally likely. What is the probability that the twins will be in the middle two places (positions 5 and 6)?

Explain a shareholder sues alleging that jimmy violated : Explain A shareholder sues alleging that Jimmy violated his fiduciary duty of loyalty. Additionally, the shareholder claims that the directors violated their fiduciary duties of care. Is the shareholder correct?

Explain the difference between explicit and implicit costs : Explain the difference between explicit and implicit costs using an example if appropriate. Why is it that economists consider both explicit and implicit costs to be part of total costs while economists do

Determining the stolper-samuelson theorem : According to the Stolper-Samuelson theorem, would you expect all workers across the globe to favor limiting trade given that due to technological advances, production of most goods the world over are capital intensive? Why or why not?

Why is the price of a big mac not the same in every country : Using the most recent index, which country has the most expensive Big Macs? Which country has the cheapest Big Macs? Why is the price of a Big Mac not the same in every country?

Probability of committee consisting of all republicans : How many different committees on community development are possible?- Suppose the committee members are selected at random. What is the probability of a committee consisting of all Republicans?

Have the poor become poorer under capitalism : Capitalism was a derogatory term pointed by Karl Marx ti deride the riches of those who accumulated capital. Have the poor become poorer under capitalism

What rhetorical choices do writers make : What rhetorical choices do writers make when discussing the issue or community you've chosen? How can you use similar tactics to take action effectively through composing for your community? (250-750 words)

What is the exact form for relative ppp : What is the non-approximate form of the international Fisher effect?

User Account

All Pages