What You May Have Missed
By Mercedes White, Deseret News
Published: Wednesday, Sept. 26 2012 10:00 p.m. MDT
For years, the Economist Magazine has published an index of the prices of Big Macs in countries around the world. The results are an easy to understand indicator of which currencies are overvalued and undervalued compared to the U.S. dollar. For example, a Big Mac in America costs about $4.20. However, an American only has to pay the equivalent of $2.12 for a Big Mac in China, but more than $7 for the burger in Norway. This means that while Chinese goods are relatively cheap for Americans, Norwegian goods are quite expensive.
“McDonald's has 50,000 employees in China. They wouldn't need that many people if demand was solely driven by American tourists.”
Jamal Haider of the Paris School of Economics
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