all the indexes !



mens underwear index( MUI ):: is used to indicate the fact that when the economy is flat and stable so is the sale of underwear in a country ! when economy is tight so do men hold on to their underwear tightly ! critics say that this no correlation as men anyways don't change underwear in a hurry ! :)

coca cola index :: consumption of coca cola has been used as an indicator of the wealth of a country , its seen that higher the wealth of a country , higher the consumption ! as the graph ( by the side ) indicates ...theres also a measure of PPP , ie purchasing price parity that a bottle of coke cost is used for , so costlier a bottle of coke the more developed the country , so is the theory atleast !







Big Mac index ::


The burger methodology has limitations in its estimates of the PPP. In many countries, eating at international fast-food chain restaurants such as McDonald is relatively expensive in comparison to eating at a local restaurant, and the demand for Big Macs is not as large in countries like India as in the US


In addition, there is no theoretical reason why non-tradable goods and services such as property costs should be equal in different countries: this is the theoretical reason for PPPs being different from market exchange rates over time. The relative cost of high-margin products, such as essential pharmaceutical products, or cellular telephony might compare local capacity and willingness to pay , as much as relative currency values.
Nevertheless, economists widely cite the Big Mac index as a reasonable real-world measurement of purchasing power parity

McDonald's is also using different commercial strategies which can result in huge differences for a product. Overall, the price of a Big Mac will be a reflection of its local production and delivery cost, the cost of advertising (considerable in some areas), and most importantly what the local market will bear - quite different from country to country, and not all a reflection of relative currency values. In some markets, a high-volume and low-margin approach makes most sense to maximize profit, while in others a higher margin will generate more profit. Thus the relative prices reflect more than currency values. For example, a hamburger sandwich
Another indicator is the fastest in terms of wages in terms of time to earn a Mac are the following ::
Tokyo, Japan - 10 minutes
Los Angeles, United States - 11 minutes
Chicago, Illinois, United States - 12 minutes
Miami, Florida, United States - 12 minutes
New York City, New York, United States - 13 minutes
Auckland, New Zealand- 14 minutes
Sydney, Australia- 14 minutes
Toronto, Ontario, Canada - 14 minutes
Zürich, Switzerland - 15 minutes
Dublin, Ireland - 15 minutes
Ten slowest earned (July 2009)
Nairobi, Kenya - 158 minutes
Jakarta, Indonesia - 136 minutes
Mexico City, Mexico - 129 minutes
Caracas, Venezuela - 126 minutes
Manila, Philippines - 88 minutes
Cairo, Egypt - 82 minutes
Santiago de Chile l - 69 minutes
Bratislava Slovakia - 62 minutes
Mumbai, India - 61 minutes
Budapest, Hungary - 59 minutes









ipod index :: in this health conscious era the Big mac index has found a new index comings its way the Ipod index , which basically compares prices of the Ipod and uses that as an indication to check the exchange rate variations , thus if an ipod is cheaper in one country then another its a crude indication that its currency is undervalued and has scope to go up !









Comments

Find out the the 10 things to help you choose the right location for your retail business in India.
http://www.indianrealestatefordummies.com/2011/07/india-retail-how-to-choose-right.html
Praveen Ch said…
i believe big mac index is a close call for ppp though it doesnt give the exact exchange currency rates but still it gives a relative picture of the infrastructure, technical advancements etc

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