FACULTY OF ECONOMICAL SCIENCE Big Mac Currencies (The 2002 Big Mac Index) Foundation of Economics Economics Efficiency International Investments Presentation Paper October 19‚ 2012 Chisinau 2012 Foundation of Economics THE BIG MAC index The Big Mac is the world’s most popular sandwich‚ was created in 1968 by a McDonald’s franchise in Pittsburgh‚ Pennsylvania. While most people see the Big Mac as a sandwich‚ economists also see that as a consumer good
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BIG MAC INDEX WHAT IS A BIG MAC INDEX? The big Mac index is a theory dealing with PPP purchase power parity. The big Mac index was created by the Economist based on the Purchase Power theory‚ the first step understands what the Purchase power theory is. Here is a brief example to better understand the purchase power theory; suppose that one US dollar is currently in the market for ten Argentinean pesos. In the United States a soccer ball costs $40 while in Argentina they sell the same soccer
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Big Mac Index The McDonald’s corporation – “McDonald ’s is the leading global food-service retailer with more than 34‚000 local restaurants serving nearly 69 million people in 118 countries each day” (McDonalds Corporation‚ 2014). The statistics alone are impressive for a company that started as a single restaurant in Des Plaines‚ IA in April‚ 1955 (McDonalds Corporation‚ 2014). Even more impressive is the influence McDonald’s has on global economic forecasting by virtue of its signature sandwich
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Estimating the Purchasing Power Parity (PPP) of currencies using the Big Mac Index™ Table of Contents 1. Introduction 2. Purchasing Power Parity and Theory of one Price 3. Over/Under Valuation of currencies against the Dollar 5. Comparative analysis of the most overvalued to the most undervalued 6. Observation and Alternative indexes 7. Limitations 8. Appendix INTRODUCTION Purchasing power parity (PPP) is an important and critical topic in international economics. It arises when the
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FDI: is a direct investment into production or business in a country by an individual or company of another country‚ either by buying a company in the target country or by expanding operations of an existing business in that country. Horizontal FDI: Processes conducted at home country are replicated directly in the host country. Vertical FDI: performs value-adding activities either upstream or downstream on the processes in host country. MNE: A company with operations in multiple locations across
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“What a waste.” I slurred to Big Mac. “What’s that?” Big mac replied with his usual aussie twang. “What. A. Waste.” I looked him dead in the eye. “You alright‚ Bob?” “Yeah mate‚ just disappointed?” “Disappointed?” “With my son. You know what? He shouldn’t even be that‚ with my little‚ vulnerable daughter.” I spat on the ground in disgust‚ that really got the locals attention‚ nosey buggars they are. Big Mac had his hand down his pants with his belt undone‚ a thing they called “adjusting”. I’ve been
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Haley Spencer Professor Flood English 101 20 October 2014 Big Mac with a Side of Apples and a Diet Coke For decades the fast-food industry has supplied Americans with tasty‚ comforting food‚ quickly and for a low cost. It was not until recently‚ when the health craze first hit America in the late 1980’s that corporations developed a new approach to marketing health food products to fit their customer’s wants. Fast Food companies trick their costumers into believing the fast-food is healthier by fancy
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have emerged around the world for example in China and Ethiopia 3) A new index was created based on Starbucks products like the Big Mac index in order to compare prices and the economy of different countries and finally and 4) A book was written base on Starbucks leadership principles. Later Ritzer also compares and analyzes the possibility of Starbuckization replacing Mcdonalization ‚ which he express his opinion with a big “no” by saying that McDonalds started the fast food industry and
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ADDITIONAL MATHEMATICS PROJECT WORK 2/2012 “INDEX NUMBER” NAME: Lio Xing Ying Class: 5I I.C. No: 950818-13-6166 School: SMK Marudi TEACHER: Miss Tie Yien Mee Teacher’s signature: CONTENT CHAPTERS | TITLES | PAGES | 1 | CONTENT | 2 | 2 | APPRECIATION | 4 | 3 | OBJECTIVES | 6 | 4 | INTRODUCTION | 8 | 5 | PART A | 11 | 6 | PART B | 15 | 7 | PART C | 19 | 8 | PART D | 24 | 9 | FURTHER EXPLORATION | 26 | 10 | CONCLUSION | 28
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When I was around six years old‚ one of my favorite places to go with my father was McDonalds. Those perfectly bronzed golden arches‚ the ultimate American icon‚ stood out no matter what part of the city road you were driving on. Then‚ the closer and closer you got to heaven‚ it hit you like a Russian freight train…..that smell‚ that wonderful‚ mind blowing‚ slap me in the face nectar that could only come from two places; mother’s kitchen and McDonalds. Of course this love affair all started in
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