![]() ![]() ![]() Here’s how much you’ll need no matter the country in the world you find yourself in, to enjoy, as McDonald’s says it, mouthwatering perfection with two 100% pure beef patties, Big Mac sauce sandwiched between a sesame seed bun, cheese, crisp lettuce, onions, and pickles to top it off. So, to calculate the cost of the Big Mac in a way that’s comparable despite varying currencies, the average national Big Mac price has been taken and converted to the most recent exchange rate in U.S dollars. In New York City, at least, a Big Mac will cost you a solid 5 these days (and more, after tax). McDonald’s top-selling burger is made in a standardized size and method, with the same quality in nearly every country. If you then compared it to the foreign exchange rate, which is 0.78 at the time of your analysis, it would indicate that the pound is undervalued by 25. Plus, using something as delicious and recognized as the Big Mac might shed some light on the complex world of economics. Let’s say a Big Mac costs £3.19 in Britain and 5.51 in the United States if you were to divide the local price in Britain by the US price, you’d get a Big Mac index exchange rate of 0.58. ![]() By comparing the price of the infamous burger between countries, you reach a better understanding of what people are paying for the same item across the globe. The Economist magazine created the Big Mac Index in 1986 in order to illustrate consumer purchasing power and to provide a better understanding of the currency value in any given country. I’m sure when the first McDonald’s franchise owner Jim Delligan from Pennsylvania perfected the Big Mac sauce (which took him two years), he never thought that in 1968 his creation would later become a way to measure a country’s economy. Can you think of something that 120 countries across the world have in common? That would be the one and only Big Mac hamburger offered by McDonald’s franchises internationally.
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