Question
If the price of a Big Mac hamburger in the US is $3.99 and the price of a Big Mac hamburger is $6.60 in Australia
If the price of a Big Mac hamburger in the US is $3.99 and the price of a Big Mac hamburger is $6.60 in Australia and the current exchange rate is $1 A = $0.76 US what does this indicate about the exchange rate between the two currencies ? What is the correct price for a Big Mac in Australia ?
What are the reasons for the difference in value ?
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Multinational Business Finance
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
14th edition
133879879, 978-0133879872
