Big Mac Index, Data of Big Mac Index Economist- Big Mac Index Database
October 19, 2011 in Financial Services
Big Mac Index is McDonalds index used to identify purchasing power parity of all countries which helps in projection of similar costing of products in all countries. Big Mac Price strategy was adopted by McDonald to keep same price and same costing for burgers in all countries. Big Mac Index considers Implied PPP, Currency Exchange Rate and percentage of overvaluation of currency and as well as undervaluation of currency to identify the cost of product and selling price of product to keep similar revenue and similar profit structure in all countries. The big mac index economist begin from 1986 and was The big mac index fast food for thought. The Big Mac Index by Chart is a quick way to calculate Purchasing Power Parity.
Big Mac Index Historical Data @ $5
What is Big Mac Index?
Big Mac Index is set of data which helps in identifying similar costs structure of products in all countries. Big Mac Price structure considers financial factors such as Currency Exchange Rate, Overvaluation & undervaluation of currency and Implied Purchasing Power Parity which aids organizations in identifying actual costing of product in every country.
Big Mac Index is well-drawn approach to identify the sales volume and cost structure of products in every country. Big Mac Index data is used by actuarial to access and value of business projects sustainability in the different countries. Big Mac Index data helps in forecasting future Net Asset Value (NAV), Risk assess, overheads and other costs to check the feasibility of business project in any country. See below Big Mac Index by Chart
Big Mac Index chart
Click this link below to check Big Mac Index 2011 with chart
https://docs.google.com/spreadsheet/ccc?key=0AomsgZkrZv0rdF9OcE5TRVNjUW9BOUd0eXVFSUtkRFE#gid=0
Big Mac Index Database historical
Big Mac Index table calculate Big Mac on Implied PPP and Actual Currency Exchange Rate in respect of dollar to identify the valuation of currency. Big Mac Index is calculated on 1 point basis. The example of Big Mac Index calculation is
Argentina Implied PPP is 3.22 whereas Exchange Rate is 3.81.
Big Mac Index formula is Implied PPP / Exchange Rate. So in case of this example the Big Mac Index for Argentina will be 3.22 / 3.81 = .845
The Big Mac Index formula implies that the price of Argentina’s currency could should is equivalent .845 and Currency of Argentina could vary from around this level. If there is any deviation in valuation of currency, the currency of Argentina could be corrected to this level of Big Mac Index.
How is Big Mac PPP Index Calculated
Big Mac PPP Index is calculated by Dividing “Big Mac price in your city” by “ Big Mac price in USA”. The price is first converted in USD in order to calculate global prices. Big Mac PPP Index= Big Mac price in your city / Big Mac price in USA
Importance of Big Mac Index Data, Big Mac Data use and application
Big Mac Index Data is very important in financial analysis and Big Mac Index data address and applicable in following fields
1. Investors:- Big Mac Index is most authentic source to identify any Business Project forecast in any country. Big Mac Index Database aids in identify purchasing power parity of people in the region to identify actual costs and sales prediction of newly launched product in any country. Big Mac data is also useful for investors even in case of Foreign Indirect Investments (FII) and portfolio investment management in stock exchange and financial markets.
2. Travelers:- Big Mac Index database also helps companies and individuals in order to identify and calculate living cost in any country. Big Mac Index helps in preparing traveling budgets and as well expenses which includes food, stay and traveling/
3. Financial Research:- Big Mac Index 2012 will help financial researchers to identify their future investments in currencies and stock exchanges in foreign countries. Financial Researchers can identify the difference between overvaluation and undervaulation of currency to adopt their investment arbitrage strategy securely.
4. Financial Schools:- Big Mac Index data is also used by Business Schools and Financial Institutes to training and classroom projects for their students. Big Max Index data is most effective way to learn financial and investment complications in foreign countries and stock markets. Big Mac Data is also used by actuarial to identify the cost of project and analyze investment risk in any country. See example of Big Mac Index by Chart
Big Mac Index chart
Big Mac Index Data @ $5
Functions of Big Mac Index
1. Decision-making and investment decision
2. Assess Risk in business project and investments
3. Statistical tool and Financial Chart Analysis
4. Currency Exchange Rate comparison
5. Analysis of purchasing power parity
Evolution of Big Mac Index Data
Big Mac Index begin in 1986 and was also known as burgernomics. Since Big Mac Index was idea based on MacDonald’s burger, researcher predicted purchasing power parity on basis on time a person needs to purchase one burger of MacDonald. According to purchasing power parity theory or PPP theory the price of product in one country is divided by value of same product in another country, the value is than analysed with exchange rate to determine valuation of currency rates.
Big Mac Index was initially based on burgers but now Big Mac Index is more focused on Gold and value of Dollar in 2012. Big Mac Index 2012 is calculated on basis of price of gold and crude oil for effective purchasing power parity analysis.
Big Mac Index Spreadsheet
We have Big Mac Index Spreadsheet which contains Economists Big Mac Index Data from 1986 to 2011. Our Big Mac Index Spreadsheet consists of Database of Big Mac Index from beginning to most current updated data.
We sell Big Mac Index Spreadsheet @ just $5 which included Big Mac database from 1986 to 2011. The spreadsheet contains Big Mac Price of all countries in their local currency and USD, Implied PPP, Actual Exchange Rate of the year, percentage of over & under valuation and Big Mac Index Value.
Our Big Mac Spreadsheet contains data which can be used to analyze country wise chart analysis such as
Japan vs USA Big Mac Index chart or Japan Big Mac Chart
Japan vs USA Big Mac Index chart or Japan Big Mac Chart
Our Big Mac Index Spreadsheet has also Big Mac Index Chart for every year, our Big Mac Index spreadsheet contains analyses Big Mac Index score for every country and each year which makes calculation very easy.
Big Mac Index Spreadsheet
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