Sebolino From France, joined May 2001, 3667 posts, RR: 5 Reply 1, posted (9 years 1 week 4 days 9 hours ago) and read 6531 times:
Luxembourg is number 1, much higher than the USA.
The calculation is made in "Buying power standard" representing "an equal volume of goods".
The advantage of this calculation is to take into account the differences of inner prices.
Luxembourg: 35980
USA : 27561
Japan: 22402
EU : 20613
MaverickM11 From United States of America, joined Apr 2000, 15722 posts, RR: 47 Reply 2, posted (9 years 1 week 4 days 9 hours ago) and read 6521 times:
United Airline From Hong Kong, joined Jan 2001, 8792 posts, RR: 17 Reply 3, posted (9 years 1 week 4 days 8 hours ago) and read 6515 times:
But another survey (The big mac one) showed that USA has the highest per capita income. And Japan comes 2nd and Hong Kong is number 3. Well...... this is in terms of absolute terms without taking other factors into account.
KEno From Malaysia, joined Feb 2004, 1841 posts, RR: 31 Reply 6, posted (9 years 1 week 4 days 2 hours ago) and read 6482 times:
Big mac is used as a standard product for comparison because no matter where in the world you purchase it, you'd get the exact same ingredients, weight and size. I guess you could also use other products like Coke, but definitely not general products like bread.
Sebolino From France, joined May 2001, 3667 posts, RR: 5 Reply 11, posted (9 years 1 week 3 days 19 hours ago) and read 6444 times:
A calculation in term of hamburgers is ridiculous.
If I choose a calculation in term of Bordeaux wine, France will be number 1.
It has to reflect what people really buy (food, cars, gas, cinema tickets, ...).
If the salaries in a country is much higher than in another (f.e. USA vs France), you have to take into account the fact that houses (for example) are much more expensive in the USA too. You can't just apply the parity and say: more dollars = more living power. (that would be true for an American coming in vacation in France though).
Sebolino From France, joined May 2001, 3667 posts, RR: 5 Reply 13, posted (9 years 1 week 3 days 19 hours ago) and read 6438 times:
Yes,
Except that the price of a BigMac is not determined with the same criterions in all countries.
Perhaps one country has cheaper meat or tomatoes, or the demand is so low that MacDonald's has decreased the price, or the minimum salaries of MacDonald's employees is much higher than in another country.
And perhaps BigMac is very expensive because of an expensive meat, but cars and beers are very cheap ...
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