Posted: July 11th, 2022

Select one advanced, one developing, and one emerging IMF market.

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Step 1: Select one advanced, one developing, and one emerging IMF market.
Watch the video at https://www.youtube.com/watch?v=b71uzrr8hUs&feature=emb_imp_woyt
Reference our IMF 2021 Country Classifications map to ensure you are selecting appropriate countries.
The countries that you select should be unfamiliar to you. Do not select the United States or Britain (as it is used in the example below).
Step 3: Research your chosen countries on the Economist’s Big Mac Index. (Links to an external site.)
This is an interactive site, so you can click on the map and see how much the Big Mac will cost in your selected countries.
This also gives you information about whether the currency of that country is undervalued or over-valued.
Step 4: Complete your initial post, addressing the following:
Identify your three chosen countries and provide the cost of a Big Mac in each of those countries.
Choose the US dollar as the base currency, show index at current month/year, and choose the GDP-adjusted option.
Explain if the currency of each of your selected countries is under-or over-valued (relative to the US Dollar).
Hypothesize the factors that impact the value of the currency in each of your selected countries. How might those factors impact a product launch into the countries that you explored?
What are the implications of the valuation on a proposed product launch (by an American company) in these countries?
Note: In answering this final prompt, think about a time when you may have traveled abroad and were saying to yourself, “How much can I afford or buy in this country?” “How much will the prices in the country I am visiting compare to prices where I live?”
Remember, we should always consider dollar for dollar. What we mean by this is that if an individual earns $4000 per month in the United States and 4000 Turkish Lira in Turkey, we need to understand that in the minds of an individual in Turkey, 1Turkish Lira is like us thinking about $1. Currency conversion is not being calculated with each purchase. We need to consider inflation and affordability based on the average earnings of the country
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