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Explain the Principles on Which the Economist's Big Mac Index

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Essay

Explain the principles on which The Economist's Big Mac index is built, and comment on its use to international managers.


Definitions:

Serotonin

A neurotransmitter in the brain involved in regulating mood, appetite, and sleep among other functions.

Acetylcholine

A neurotransmitter involved in many functions including muscle movement, heart rate, memory, and also acts as a neuromodulator in the central and peripheral nervous systems.

Dopamine

A neurotransmitter involved in many brain functions, including reward and motivation, motor control, and the regulation of mood.

Rebound Insomnia

A condition where difficulty sleeping reoccurs or worsens after discontinuing sleeping pills, leading to temporary sleep disturbances.

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