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PURCHASING-POWER PARITY A pair of Men's Burton lace-up dress shoes cost SAR 475 in Saudi Arabia but costs GBP 79 in England. Assuming that purchasing-power

PURCHASING-POWER PARITY

A pair of Men's Burton lace-up dress shoes cost SAR 475 in Saudi Arabia but costs GBP 79 in England. Assuming that purchasing-power parity (PPP) holds, how many SAR are required to purchase 1 GBP.

Cost in Saudi Arabia =475 SAR

Cost in England = 79GBP

pair of Burton shoesSARGBPSAR/shoesshoes/GBPGBP/SAR

1 475-475

179

SAR/GBP = (SAR/shoes)*(shoes/GBP) =

Note make it as excel financial calculations

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