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Given the information: Price of a BigMac in US: Price of a Big Mac in Mexico: Exchange rate of MXN in Indirect Quote (MXN/USD): USD

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Given the information: Price of a BigMac in US: Price of a Big Mac in Mexico: Exchange rate of MXN in Indirect Quote (MXN/USD): USD 3.75 MXN 40 1 USD = 7.50 MXN Based on absolute PPP violations as observed from the prices of Big Mac in US and Mexico, it would make sense for a US company doing business in Mexico to: O produce in the US and sell in Mexico O produce in Mexico sell in the US

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