We have the following prices for a certain good in different countries. There are no freight nor other costs affecting these prices.

Calculate if Exchange rates are overvalued or undervalued considering PPP.

EXERCISE 9 We have the following prices for a certain good in different countries. There are no freight nor other costs affecting these prices. Calculate if Exchange rates are overvalued or undervalued considering PPP. Prices in local currencies 18,5 pesos 40,5 reales Country Argentina Brasil Venezuela Indonesia South Corea China Spain USA 11.600 bolvares 175 rupees 25 won 165 yuanes 20 euros 20 dollars Exchange rates 0,99986 P/$ 2,03 R/$ 577,4 B/$ 8,825 Rp/$ 1,210 W/$ 8,2787 Cny/$ 0,9116 /$ 1 $/$