The following table shows the local prices of a Tall Latte coffee in Starbucks in 2017:

City	Currency	Price in local currency
Zurich	Swiss franc	5.66
London	Bristish pound	2.04
Berlin	Euro	2.79
Sydney	Australian dollar	4.14
Toronto	Canadian dollar	3.77
Beijing	Chinese yuan	26.69
New York	U.S. dollar	3.45
India	Indian rupee	200.10
Malaysia	Malaysian Ringgit	12.20
Mexico	Mexican Peso	43.00
Philippines	Philippine peso	150.00
South Korea	Korean Won	5,100.00
United States	U.S. dollar	3.55

a. Calculate the dollar price of a latte in each country using the exchange rates in Table 22.1. b. Does purchasing power parity hold? c. What would the local price of a latte need to be in each country to ensure that the cost was the same as in the United States? In each case state whether the currency would need to appreciate or depreciate to equalize the prices.

TABLE 22.1 Exchange rates in April, 2018. Country Currency Exchange Rate Europe Eurozone countries Euro (EUR or ) 1.217 Sweden Krona (SEK) 8.561 Switzerland Franc (CHF) .983 United Kingdom Pound (GBP or ) 1.393 Americas Brazil Real (BRL) 3.484 Canada Dollar (CAD) 1.284 Mexico New peso (MXN) 18.846 Asia/Africa Australia Dollar (AUD) 1.322 China Yuan (CNY) 6.324 China (Hong Kong) Dollar (HKD) 7.847 India Rupee (INR) 66.910 Japan Yen (JPY or ) 109.430 South Africa Rand (ZAR) 12.433 South Korea Won (KRW) 1,081.200 Direct quotes (number of U.S. dollars per unit of foreign currency). Other quotes are indirect (units of foreign cur- rency per U.S. dollar). Source. The New York Times Ancil 26 2018