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The Economist Publishes Annually the "Big Mac Index" by Which

question 23

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The Economist publishes annually the "Big Mac Index" by which they compare the prices of the McDonald's Corporation's Big Mac hamburger around the world. The index estimates the exchange rates for currencies based on the assumption that the burgers in question are the same across the world and therefore, the price should be the same. If a Big Mac costs $2.54 in the United States and 294 yen in Japan, what is the estimated exchange rate of yen per dollar as hypothesized by the Hamburger index?


Definitions:

Corporate Social Responsibility

A business model that helps a company be socially accountable to itself, its stakeholders, and the public.

Reasonable Price

A price that is fair and acceptable to both buyers and sellers, given the quality and nature of the product or service.

Services and Products

The combination of tangible goods and intangible activities that fulfill a need or want of consumers.

CSR Levels

The varying degrees to which a business engages in corporate social responsibility initiatives, from basic compliance with laws to integrating social and environmental concerns into their business model.

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