According to purchasing power parity

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Reference no: EM131460374

Starbucks in Croatia. Starbucks opened its first store in Zagreb, Croatia in October 2010. In Zagreb, the price of a tall vanilla latte is 25.72 Croatian kunas (kn or HRK). In New York City, the price of a tall vanilla latte is $2.66. The exchange rate between Croatian kunas and U.S. dollars is kn5.6288 = $1. According to purchasing power parity, is the Croatian kuna overvalued or undervalued?

The percentage of overvaluation or undervaluation is (Round to two decimal places.) According to purchasing power parity, the Croatian kuna is (Select from the drop-down menu.)

Reference no: EM131460374

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