China has the cheapest Big Macs

[Martin]

http://story.news.yahoo.com/news?tmpl=story&cid=573&ncid=757&e=4&u=/nm/20030425/od_nm/economy_china_yuan_dc

The survey found that the average price of a Big Mac was $2.71 in four U.S. cities and just $1.20 in China, implying that the yuan was undervalued by 56 percent against the dollar.

"In other words, the yuan is the most undervalued currency," The Economist said.

The index is a rough-and-ready measure of a concept that economists call purchasing-power parity, valuing currencies according to what they will buy at home, rather than in international exchange.

The yuan is pegged to the U.S. currency, moving in a very slim band around 8.28 to the dollar. It cannot be exchanged freely for foreign currencies, but can be for sandwiches.

 

[human2k]

Damn, thats cool.

 

[Booster]

Big Macs are $1.3 per piece! And they say MCDonalds is cheap... :|

The only item I'd buy at MCDonalds is their icecream for 19 cents.

 

[Bignate603]

That's an interesting way to do a reality check on the values of currency. That's only really useful though if the burgers are exactly the same though, if it's cheaper in one place because they have lower quality stuff that's not a good comparison.

 

[Haircut]

Originally posted by: Bignate603
That's an interesting way to do a reality check on the values of currency. That's only really useful though if the burgers are exactly the same though, if it's cheaper in one place because they have lower quality stuff that's not a good comparison.

True, I know most of the stuff at McDonalds here in England has a lower fat content than the equivalent thing in the US and it costs more.

 

[Booster]

Originally posted by: Bignate603
That's an interesting way to do a reality check on the values of currency. That's only really useful though if the burgers are exactly the same though, if it's cheaper in one place because they have lower quality stuff that's not a good comparison.

And also b/c McDonalds workers in China aren't paid $5 per hour, definately much less.

 

[JoPh]

good for them. fast food is gross.

 

[Scarpozzi]

Ahh....China just has the cheapest soy.

 

[RobCur]

Originally posted by: JoPh
good for them. fast food is gross.

Gross-
Brutishly coarse, as in behavior; crude: "It is futile to expect a hungry and squalid population to be anything but violent and gross"
Offensive; disgusting.
Lacking sensitivity or discernment; unrefined:
Carnal; sensual.

 

[MichaelD]

Cat is much cheaper and more plentiful than Beef, in China.


In Communist China, the Catburger eats YOU.

 

[Spac3d]

They are $1.99 here in Columbus

 

[MooseKnuckle]

Let's run to China to buy cheap Big Macs, but come back with SARS. No thanks.

 

[kuk]

I dunno if China is the cheapest.
A Big Mac is U$1.16 here in Brazil.

 

[Mallow]

interesting topic