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  • Essay / Analysis of the case of the million yen - 729

    It allows us to translate the difference in value between currencies into real terms. As of 03/04/15, the 5 countries with the largest undervalued Big Mac are Russia, Hong Kong, Malaysia, India and Taiwan, adjusted for GDP per person (H&W, 2015). The Russian currency is currently undervalued by 57.8% (H&W, 2015). This means that a Big Mac in Russia would cost $1.36 in US dollars today, compared to $4.79 in the US today. In Hong Kong, the same Bic Mac would cost $2.43 or HKD$18.80 (H&W, 2015). In the United States, a person can buy two Big Macs in Hong Kong and three Big Macs in Russia for the price of one in the United States. However, the United States does not have the greatest purchasing power in the world.