How McDonald's Big Macs can explain the world

Published: Wednesday, Sept. 26 2012 10:53 p.m. MDT

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Summary

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.

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Mountanman

Hayden, ID

My children worked at McDonalds and developed work skills that greatly benefited them when they started their current careers! McDonalds is successful because they produce a product that people are willing to pay for! Their profits are not evil!

11:18 a.m. Sept. 27, 2012
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che1968

Exton, PA

While travelling on business in Venezuela nearly 20 years ago, my local host and representative indicated that the locals judged the exchange rate between bolivares and the dollar by the price of the Big Mac. There was the official exchange rate, and More..

3:57 a.m. Sept. 27, 2012
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NedGrimley

Brigham City, UT

What would that *accomplish*? Provide someone the opportunity to *throw rocks* because they don't agree with their business model?

8:11 a.m. Sept. 27, 2012
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