FNCE90016 International Financial Management - Group Assignment

Part I. PPP Study Using Specific Commodities

Question 1

We start with the Big Mac index. The original data are from The Economist’s website: http://www.economist.com/content/big-mac-index. For this assignment, we want to look at the following regions: USA, Australia, Brazil, Canada, Hong Kong, New Zealand, Philippines, Singapore, UAE, UK. Use data from July 2020, write down the local price, market exchange rate vs. USD, PPP implied exchange rate vs. USD, and relative difference (in percentages) between the two exchange rates.

(5 marks)