The Economist's Big Mac Index Has Not Been Very Accurate

question 78

True/False

The Economist's Big Mac index has not been very accurate in predicting future exchange rate movements.

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Definitions:

English

A West Germanic language originating in England, now the primary language of several countries and a global lingua franca for business, science, and diplomacy.

International Business

Engaging in commerce and trade activities that cross national boundaries, involving different cultures and economic systems.

Localization Approach

A strategy used by businesses that adapt their products, services, and operations to meet the cultural, regulatory, and market needs of different geographic locations.

Balance Sheet Approach

A method in international human resource management that aims to equalize the standard of living between the host country and the home country of an expatriate.