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Assume USD / MXN 2 0 in nominal currency exchange rate terms. A Toyota Forerunner costs $ 5 2 , 0 0 0 in the
Assume USDMXN in nominal currency exchange rate terms. A Toyota Forerunner costs $ in the US If Purchasing Power Parity PPP were to hold true based on USDMXN in nominal currency exchange rate terms, and that fact that the vehicle costs $ in the US what would we expect the Forerunner to cost in Mexico, in Mexican Peso terms? We are not asking what the vehicle actually costs in Mexico. We are asking what we would expect the vehicle to cost if PPP held true based on these data points
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