Advantages and disadvantages relative to the big mac index

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1. The Australian firm CommSec has recently created the iPod Index. What are its conceptual advantages and disadvantages relative to the Big Mac Index? Search the Web to find where the two indexes stand relative to one another.

2. Construct a textbook price index. That is, take some of your school textbooks and see how their prices differ in five countries of your choice. Do textbooks obey PPP? Can you arbitrage the price differences?

Reference no: EM131243310

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