On the other side of the spectrum, a Big Mac in Ukraine only costs 1.67. It is made with a double layer of sear-sizzled 100 pure beef that mingles with sauce and melted cheese, diced onion, crisp shredded iceberg lettuce and a crunch of pickle. On the expensive side of things, a Big Mac will run you 6.82 in Switzerland. There is only one BIG MAC Just the look of this tasty and aromatic giant is good enough to tempt you. In the middle of the spectrum, we have the home of the Big Mac, the USA, where one of these iconic burgers costs USD 5.30. minimum wage ranked on an international scale, so we took a fairly well-known indicator – the Big Mac Index – and compared burger prices to minimum wages in different countries," says the ConvergEx team. The latest data from the Big Mac Index provides ample proof of that. In a note to clients today, strategists at ConvergEx Group make a slight modification to the calculation. So the 'raw' Big Mac index says that the yuan was undervalued by 43% at that time." For example, the average price of a Big Mac in America in July 2013 was $4.56 in China it was only $2.61 at market exchange rates. "It is based on the theory of purchasing-power parity (PPP), the notion that in the long run exchange rates should move towards the rate that would equalise the prices of an identical basket of goods and services (in this case, a burger) in any two countries. "The Big Mac index was invented by The Economist in 1986 as a lighthearted guide to whether currencies are at their 'correct' level," says the magazine's website.
0 Comments
Leave a Reply. |