10. a. (2) What is the Big Mac Index? b.(3) Suppose the price of
a Big Mac in the EU is 4.5 € and the price of a Big Mac in the US
is $3.25. What is the implied exchange rate? Explain how you
calculated the rate. c. (3) Suppose the actual exchange rate is
$1=1€. According to the Big Mac Index, is the euro overvalued or
undervalued. d. (3) If you are a currency investor who has
confidence in...
How does the Big Mac Index and the topic of purchasing power
relate to the overall outlook on the economy? Do you think economic
indicators are helpful and useful?
the big mac index is considered a good candidate for the
application of the law of one price and measurement of under or
overvaluation of a currency. develop on five argument as to why
this is a good idea.
Assume a Big Mac is $3 in the U.S. How much would the Big Mac
cost in China?
Conduct some research. Identify at least one difference between
the typical menu offering in the U.S. and the menu offering in
China. Be sure to provide a citation.
Conduct some research. Identify a major fast-food competitor
that McDonalds faces in China. Be sure to provide a
citation.
Conduct some research. Locate a video commercial for McDonalds
in China. Identify at least one...
Go to The Economist website and search for the Big Mac
Index for a recent time period. Compare the Purchasing Power of the
United States with another country. Try to choose a country with
which you are not very familiar. What does this parity say about
the potential standard of living in the country you chose? What
does it say about the potential wage level?
Go to The Economist website and search for the Big Mac
Index for a recent time period. Compare the Purchasing Power of the
United States with another country. Try to choose a country with
which you are not very familiar. What does this parity say about
the potential standard of living in the country you chose? What
does it say about the potential wage level?
Read the article of “Our Big Mac index of global currencies
reflects the dollar’s strength”.
It is perhaps not surprising that the worst-performing major
currency in the world this year is the Turkish lira. Many
emerging-market currencies have taken a battering since the
election in November of Donald Trump raised expectations of faster
monetary tightening in America and sent the dollar soaring. But the
lira has many other troubles to contend with, too: terrorist
bombings, an economic slowdown, alarm over...