Construction and Analysis of a Purchasing Power Parity Index (PPP). Choose five countries and their exchange rates for the US dollar price in terms of the domestic currency.
Power Parity Index
Choose five countries and their exchange rates for the US dollar price in terms of the domestic currency
Construction and Analysis of a Purchasing Power Parity Index (PPP). Choose five countries and their exchange rates for the US dollar price in terms of the domestic currency.
Choose 1 product (or service) marketed in each of these five countries. The product should be produced or has a creation and patent in the US (similar to the Big Mac).
Find the price of that product or service in each country. With all this information, compute the parity exchange rate (PPP) per year and indicate whether the domestic currency is overvalued or undervalued for the US dollar.
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