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Suppose the price of a BigMac in the US is $3.25 while it is JY 290 in Japan and RMB 28 in China. According to

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Suppose the price of a BigMac in the US is $3.25 while it is JY 290 in Japan and RMB 28 in China. According to the going exchange rate, one USD is equal to 100 yen and 8 RMB. Based on absolute PPP violations described above, the following strategy would work the best for a US company that: produces in China and sells in Japan produces in China and sells in the US produces in Japan and sells in China produces in the US and sells in Japan

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