Cost of living around the world – Big Mac Index

Are you curious about the Big Mac Index and what it can tell you about global economics? Look no further! Created by The Economist magazine in 1986, the Big Mac Index is an economic tool that measures the relative purchasing power of different currencies around the world.

The Big Mac is the most popular burger at McDonalds. The index is based on the price of a Big Mac hamburger in various countries and is used to compare the cost of living and currency exchange rates. It has gained widespread recognition as an informal and fun way to understand global economics, and is followed by economists, investors, and travelers alike.

The simplicity of the Big Mac Index is one of its main advantages. It doesn’t require any complex calculations or economic theory. The index is based on the assumption that the Big Mac is a globally standardized product, with a similar taste and quality in every country.

Businesses that operate internationally can benefit from the Big Mac Index as well. It provides a quick and easy way to understand the relative purchasing power of different currencies, which can help companies make informed decisions about pricing, marketing, and expansion strategies.

Big Mac prices (USD) around the world (descending):

Switzerland – $7.26
Uruguay – $6.85
Norway – $6.59
Sweden – $5.62
Denmark – $5.41
Argentina – $5.31
USA – $5.15
Australia – $5.11
Lebanon – $5.08
Saudi Arabia – $5.06