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Starbucks opened its first store in Seoul, Korea in October 2002. The price of a tall vanilla latte is 4,000 Korean Won. In New York

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Starbucks opened its first store in Seoul, Korea in October 2002. The price of a tall vanilla latte is 4,000 Korean Won. In New York City, the price of a tall vanilla latte is $4.00. The exchange rate between Korean Won and U.S. dollars is Won 800/ $. According to purchasing power parity, is the Korean Won overvalued or undervalued? Overvalued Undervalued

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