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6.5 Starbucks in Croatia. Starbucks opened its first store in Zagreb, Croatia in October 2010. In Zagreb, the price of a tall vanilla latte is

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6.5 Starbucks in Croatia. Starbucks opened its first store in Zagreb, Croatia in October 2010. In Zagreb, the price of a tall vanilla latte is 25.70 Croatian kunas (kn or HRK). In New York City, the price of a tall vanilla latte is $2.65. The exchange rate between Croatian kunas and U.S. dollars is kn5.6288 $1. According to purchasing power parity, is the Croatian kuna overvalued or undervalued

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