COST OF A BIG MAC IN NORWAY MAC

For Russia, industries like chemicals and fertiliser could have good times. Paying costs in ruble, while getting income in dollars give higher profits.

COST OF A BIG MAC IN NORWAY MAC

Question: The average price of a Big Mac burger in the US in 5.67. The weakness of the ruble is an opportunity for Russia’s export industry. Not enough information is given Norwegian Krone (NOK) is undervalued Norwegian Krone is equivalent to the USD after being converted. Think about that next time you grab your lunch at the McDonalds on the corner of Volna shopping Mall downtown Murmansk, the world’s northernmost of all 35,000 outlets in the chain. From the urban city of Oslo to the Svalbard islands up north and many places in between, the ten most popular destinations on represent Norway’s diverse culture and nature. According to The Economists, Russian ruble is one of the cheapest currencies in the world, 69 percent undervalued to the dollar.

The economic theory behind the Big Mac Index is that in the longer run, exchange rates ought to adjust so that one US dollar buys the same in all countries. Today, you can get a Big Mac at McDonalds in Murmansk for $1,53. Being second last on the index for 2016 means that the ruble could be strongly undervalued. If currency depreciation itself could boost export, Russia’s economy would have a bright future. The index, comparing the cost of McDonalds’ burger in different countries by converting local currency prices into dollars, has been published by The Economists since 1986.

The Big Mac Index has become a well-known measurement of purchasing power parity between two currencies, providing a test to which market exchange rates result in goods costing the same in different countries.

Cost of a big mac in norway