Assume that Starbucks generated 3% of its total revenue from Mexico in 2018, or $566.15 million when translated back to USD. Total revenue in Mexico is expected to increase by 6.5% from 2018 to 2019. The 2018 US$/MXN Peso exchange rate was 1 USD=21.65 MXN, and the MXN Peso is expected to depreciate against the USD by 8.5% in 2019. What is the amount of revenue in USD that Starbucks will recognize from Mexico in 2019?

Assume the price of 2 liters of Coca-Cola in Mexico City is $1.42 (Mexican $29 pesos), and the actual foreign exchange rate is 1 USD = 25.30 MXN Pesos. Based on the purchasing power parity theory which currency may be overvalued?