The Big Mac Index has some significant explanatory value in predicting long-term exchange rates. But all of
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Question:
- The Big Mac Index has some significant explanatory value in predicting long-term exchange rates. But all of the following are weaknesses of relying solely on the Big Mac Index to predict long-term exchange rates EXCEPT: (pick one)
It leaves out the role of tax differences across countries.
It leaves out the role of land cost differences across countries.
It is erroneous to rely on such a simple commodity to begin to assess the value of a country's currency.
It leaves out the role of differences in corruption across countries.
It leaves out the role of differences in consumer tastes across countries.
Related Book For
International Business
ISBN: 978-1259317224
1st edition
Authors: Michael Geringer, Jeanne M. McNett, Michael S Minor, Donald A Ball
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