Big Mac Economics

I think everyone had heard the word "Big Mac" (or Maharaja Mac in India). It costs you a lot. Now, the price of Big Mac, is not same everywhere. It depends on many factors, firstly, its depends on the country whether the country is rich or poor. If we take US's Big Mac Price $ 5.06, to Kenya, then nobody would buy it, it would be like selling an toffee for Rs. 500 in India. So McDonalds would always have to balance prices according to the country. Also the Big Mac (and virtually all sandwiches) vary from country to country with differing nutritional values, weights and even nominal size differences. Secondly, the marketing and renting charges. Suppose, India provides cheap labour than United States. So automatically, India's Big Mac would cost less than that of the United States.

Now, What's the use? Its uses are not accurately but by an rough estimate you can judge the purchasing power of a person of a particular country.

Now, next time when you buy a Big Mac, remember this Big Mac, can depict Purchasing Power of any country.