Part I. PPP Study Using Specific Commodities (20 marks)

All the questions and requirements are underlined with bold fonts.

We start with the Big Mac index. Sheet "Part I" in the data excel file includes

the raw data for big mac recorded on 1 July, 20221. For this assignment, we want to look at the following regions: USA, Australia, Brazil, Canada, Hong Kong, India, New Zealand, Philippines, Singapore, UAE, UK. Use data from July 2022, write down the local price, market exchange rate vs. USD, PPP implied exchange rate vs. USD, and relative difference (in percentages) between the two exchange rates. (5 marks).

For comparison, we will also look at the same results using the iPhone. You can check 256G iPhone 13 outright prices across different regions from Apple's website: http://www.apple.com/choose-your-country/. For the same regions above, write down the local prices, PPP implied exchange rate vs. USD, and relative difference (in percentages) between the two exchange rates. (5 mark) Note: You can use the same market exchange rate as above, since Apple's price do not change that often.

Compare the results for Big Mac and iPhone and briefly discuss the differences. (10 marks)

A B C D F F date iso_a3 currency_code name local_price dollar_ex 1/7/2022 ARE AED United Arab Emi 18 3.67305 1/7/2022 ARG ARS Argentina 590 129.115 1/7/2022 AUS AUD Australia 6.7 1.44843569 1/7/2022 AZE AZN Azerbaijan 4.7 1.69825 1/7/2022 BHR BHD Bahrain 1.6 0.377 1/7/2022 BRA BRL Brazil 22.9 5.39175 1/7/2022 CAN CAD Canada 6.77 1.28915 1/7/2022 CHE CHF Switzerland 6.5 0.96845 1/7/2022 CHL CLP Chile 3400 928.435 1/7/2022 CHN CNY China 24 6.74735 1/7/2022 COL COP Colombia 14950 4295.1 1/7/2022 CRI CRC Costa Rica 2650 678.105 1/7/2022 CZE CZK Czech Republic 95 23.92 1/7/2022 EGY EGP Egypt 46 18.945 1/7/2022 EUZ EUR Euro area 4.65 0.97585 1/7/2022 GBR GBP Britain 3.69 0.83108 1/7/2022 GTM GTQ Guatemala 26 7.7279 1/7/2022 HKG HKD Hong Kong 21 7.84995 1/7/2022 HND HNL Honduras 89 24.615 1/7/2022 HRV HRK Croatia 27 7.32845 1/7/2022 HUN HUF Hungary 1030 389.04615 1/7/2022 IDN IDR Indonesia 35000 14977.5 1/7/2022 IND INR India 191 79.9513 1/7/2022 ISR ILS Israel 17 3.43745 1/7/2022 JOR JOD Jordan 2.3 0.71015 1/7/2022 JPN JPY Japan 390 137.865 1/7/2022 KOR KRW South Korea 4600 1313.45 1/7/2022 KWT KWD Kuwait 1.3 0.3074 1/7/2022 LBN LBP Lebanon 130000 25600 1/7/2022 LKA LKR Sri Lanka 1340 360 1/7/2022 MDA MDL Moldova 60 19.298 1/7/2022 MEX MXN Mexico 70 20.4125 1/7/2022 MYS MYR Malaysia 10.9 4.45 1/7/2022 NIC NIO Nicaragua 139 35.89 1/7/2022 NOR NOK Norway 62 9.89765 1/7/2022 NZL NZD New Zealand 7.1 1.60372063 1/7/2022 OMN OMR Oman 1.42 0.385 1/7/2022 PAK PKR Pakistan 700 221.75 1/7/2022 PER PEN Peru 13.9 3.89285 1/7/2022 PHL PHP Philippines 155 56.265 1/7/2022 POL PLN Poland 16.68 4.64845 1/7/2022 QAT QAR Qatar 13 3.64175 1/7/2022 ROU RON Romania 11 4.82175 1/7/2022 SAU SAR Saudi Arabia 17 3.755 1/7/2022 SGP SGD Singapore 5.9 1.3914 1/7/2022 SWE SEK Sweden 57 10.19785 1/7/2022 THA THB Thailand 128 36.6125 1/7/2022 TUR TRY Turkey 47 17.565 1/7/2022 TWN TWD Taiwan 75 29.9075 1/7/2022 URY UYU Uruguay 255 41.91 1/7/2022 USA USD United States 5.15 1/7/2022 VEN VES Venezuela 10 5.6732 1/7/2022 VNM VND Vietnam 69000 23417 1/7/2022 ZAF ZAR South Africa 39.9 17.03625