The PPP theory states that in the long term, exchange rates should be determined by proportioning the same amount of product to the price in different countries.Īccording to the SAGP theory, the price of Big Mac in a country gives information about the price of materials used in the Big Mac, from the price of ingredients to local production and advertising prices. The Big Mac Index is an index based on Purchasing Power Parity (PPP) theory by The Economist magazine. ![]() Here is Big Mac Index by Country: World map: Big Mac Index by Countries What is the Big Mac Index It was first published in September 1986. The index takes its name from Big Mac, a type of hamburger sold in McDonald’s restaurants. The Big Mac Index is an index published by The Economist magazine showing the price level and purchasing power of many countries.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |