Purchase Solution

Bic Mac Index

Not what you're looking for?

Ask Custom Question

Research your currency and it's valuation per the Big Mac Index for Japan. So, give a one to two sentence explanation of what the Big Mac Index is then explain if your currency is undervalued or overvalued and by how much. Then, share at least one interesting random fact about life in the country you were assigned - whatever you found with the research you read through to get to your currency information. Finally, conclude with your thoughts.

Purchase this Solution

Solution Summary

This detailed solution researches the Japanese yen per the Big Mac index, as well as explaining The Economist's Big Mac Index. It discusses if currency is over or undervalued and by how much. APA references are included.

Solution Preview

The Big Mac Index is based upon the theory of purchasing power parity, illustrating in a simple fashion, the exchange rate for an item (the Big Mac) sold around the world. The concept states a dollar should buy the same amount in all countries. Over time, the exchange rate between two countries will move towards a rate that equalizes the prices of a Big Mac (or basket of goods and services in each country). The index serves to indicate if the currency is under- or overvalued.

In the case of Japan, the price of a Big Mac in the United States is $4.20, ...

Solution provided by:
  • BA, University of Southern California
  • MSS, United States Sports Academy
  • Ed.D, Boise State University
Recent Feedback
  • "Thk u"
  • "Thank you!:)"
  • "Thank you!:)"
  • "Thank you!:)"
  • "Thank you!:)"
Purchase this Solution

Free BrainMass Quizzes
Transformational Leadership

This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.

MS Word 2010-Tricky Features

These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.

Basics of corporate finance

These questions will test you on your knowledge of finance.

Understanding Management

This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.

Marketing Research and Forecasting

The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.