explore currency rates and see how they affect the over undervaluation of the U S dollar The Big Mac index was invented by The Economist in 1986 as a lighthearted guide to whether currencies are at their correct level It is based on the theory of purchasing power parity (PPP), the notion that in the long run, exchange rates should move towards the rate that would equalise the prices of an identical basket of goods and services (in this case, a burger) in any two countries https www economist com big mac index 1 Look at BigMac excel files analyze the data within the Excel file Update the exchange rates against the U S dollar for each country (Column C) cite the source used to obtain the exchange rate Foreign exchange trading sites like OANDA or Yahoo Finance are a good place to start Using the data that was gathered from the previous step Identify the countries in which the Big Mac is most and least expensive Cite at least three countries for each Identify the countries in which the U S dollar is overevaluated and underevaluated Cite at least three countries for each, and indicate the percentage Imagine someone would like to do business in some of the countries from your answer to Question 2 above What does the valuation tell about doing business there and the currency risk

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explore currency rates and see how they affect the over/undervaluation of the U.S. dollar. The Big Mac index was invented by The Economist in 1986

explore currency rates and see how they affect the over/undervaluation of the U.S. dollar.

The Big Mac index was invented by The Economist in 1986 as "a lighthearted guide to whether currencies are at their "correct" level. It is based on the theory of purchasing-power parity (PPP), the notion that in the long run, exchange rates should move towards the rate that would equalise the prices of an identical basket of goods and services (in this case, a burger) in any two countries https://www.economist.com/big-mac-index

1. Look at BigMac excel files

analyze the data within the Excel file:

Update the exchange rates against the U.S. dollar for each country (Column C).
cite the source used to obtain the exchange rate. Foreign exchange trading sites like OANDA or Yahoo Finance are a good place to start.
Using the data that was gathered from the previous step
1. Identify the countries in which the Big Mac is most and least expensive. Cite at least three countries for each.
2. Identify the countries in which the U.S. dollar is overevaluated and underevaluated. Cite at least three countries for each, and indicate the percentage.
3. Imagine someone would like to do business in some of the countries from your answer to Question 2 above. What does the valuation tell about doing business there and the currency risk?