Question

Calculate the cost of a meal at Mac Donald in any country. -actually prices -exchange rate...

Calculate the cost of a meal at Mac Donald in any country.
-actually prices
-exchange rate in the country currency to USA currency
-explain consumers preferences
-explain impact on you going to Mac Donald

Homework Answers

Answer #1

ANS 1=In the United States, a McChicken burger is priced at 1.29 dollars ( Rs. 85.75). Medium fries is priced at 1.79 dollars ( Rs.119), & Chicken McNuggets is priced at 3.99 dollars ( Rs. 265).

In India, a McChicken burger is priced at Rs. 89/- .Medium fries is priced at Rs. 75/- & Chicken McNuggets is priced at Rs. 108/- .

Higher pricing in America may be on account of minimum wage legislations for McDonald's staff.

ANS 2=1 US Dollar =66.48 Indian Rupee

Ans 3=The menu at MCdonald’s India incorporates more vegetarian options & eatables inspired by the domestic cuisine. Consuming beef isn’t a customary practice in India, since it is considered against several religious beliefs

Ans 4=The expenditure of a US citizen in India’s McDonalds will contribute to India’s GDP.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
[Real Exchange Rate via Big Mac Index: The real cost of living] You are planning to...
[Real Exchange Rate via Big Mac Index: The real cost of living] You are planning to visit Sydney, Australia for the summer session and want to know about the cost of living there relative to the US. Assume that the price of Big Mac is US is $4.20 (that is, 4.20 USD), while the price of Big Mac in Australia is 5.75 AUD. If today’s exchange rate between the two countries is 1AUD = 0.76 USD, then (1) calculate the...
If your country is using flexible or floating exchange rate against USD:  Please draw a simple interest...
If your country is using flexible or floating exchange rate against USD:  Please draw a simple interest parity relationship for your country. And evaluate the graph and its potential consequences in economy. If your country is using a fixed exchange rate regime against USD: Please explain how interest parity graph looks like? Please evaluate the policy changes in your country when FED changes its own monetary policy. if your country is USA, then your foreign currency is EURO. You can also...
Please verify the my solutions below. These are practice examples and I am unsure if I...
Please verify the my solutions below. These are practice examples and I am unsure if I answered them correctly. Please explain any discrepancies in detail and please explain any calculations or formulas. For parts C&D, please add detail, if my answers are not sufficient. Practice # 17. Considering Purchasing Power Parity and the Law of One Price: part a: Assume that the current price of a Big Mac in the United States today is $2.75. Assume also that the current...
Foreign Exchange (FOREX) Problem Set 1. You in US have an accounts payable to a German...
Foreign Exchange (FOREX) Problem Set 1. You in US have an accounts payable to a German exporter for 200 Porsche Cayenne SUVs. The seller offers a 2 percent discount for payment within 10 days and full payment due in 30 days (2/10 net 30). Today the exchange rate is $1.40 per Euro. You notice that the 30 day forward rate for the $/Euro is $1.38. What should you do? Pay now with early payment discount or wait until end of...
1. Suppose the initial Brazilian real to US dollar exchange rate is 4 reals (or “reais”)...
1. Suppose the initial Brazilian real to US dollar exchange rate is 4 reals (or “reais”) to 1 US dollar. The cost to buy a specified market basket of same quality products is $500,000 in the U.S. and R$1,400,000 in Brazil. Valued in U.S. dollar terms, the market basket in Brazil costs $350,000. (This market basket cost represents the combined price of thousands of products, and so also indicates an average price for those products.) (a) Consider the incentives of...
Chapter 1 Running Your Own MNC Developing Your Idea Create an idea for your own MNC...
Chapter 1 Running Your Own MNC Developing Your Idea Create an idea for your own MNC to conduct international business. Your idea should be simplified to the degree that you could possibly implement it someday. However, your idea should also be sufficiently creative to be successful if done properly. Your idea should focus on one country and one foreign currency, since many MNCs are focused in this manner when they are first created. So that you can recognize the issues...
You are working for The Good, The Bad and the Ugly Inc. in the country called...
You are working for The Good, The Bad and the Ugly Inc. in the country called Wild Wild West which does not have any corporate taxes. Currently the company has 30% debt, 70% equity capital structure. The company has 500,000 shares of common stock outstanding. Suppose the required rate of return on the debt of the company is 9.1% per year. The current EBIT of the company is $2 million and the EBIT of the company is expected to grow...
Question 1 (1 point) Which of the following can cause relative PPP to NOT hold in...
Question 1 (1 point) Which of the following can cause relative PPP to NOT hold in the short run? Question 1 options: frictionless markets state-sponsored monopolies types of labor and unique skill sets than can only be found in one area or certain areas shipping costs Question 2 (1 point) If relative PPP holds, absolute PPP must hold. Question 2 options: True False Question 3 (1 point) In 2019, the US had the highest nominal GDP in the world, before...
You are the manager of a U.S. company situated in Los Angeles and manages the import/export...
You are the manager of a U.S. company situated in Los Angeles and manages the import/export division of the company. The company distributes (resells) a variety of consumer products imported to the U.S.A from Europe and also exports goods manufactured in the U.S.A. to Canada. Therefore, your company is very much dependent on the impact of current and future exchange rates on the performance of the company. Scenario 1: You have to estimate the expected exchange rates between your home...
BLADES, INC. CASE Assessment of Exchange Rate Exposure Blades, Inc., is currently exporting roller blades to...
BLADES, INC. CASE Assessment of Exchange Rate Exposure Blades, Inc., is currently exporting roller blades to Thailand and importing certain components needed to manufacture roller blades from that country. Under a fixed contractual agreement, Blades' primary customer in Thailand has committed itself to purchase 180,000 pairs of roller blades annually at a fixed price of 4,594 Thai baht (THB) per pair. Blades is importing rubber and plastic components from various suppliers in Thailand at a cost of approximately THB2,871 per...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT