With over 34, 000 restaurants around the world, you can find McDonald’s everywhere. The possibility to buy a Big Mac wherever you are is high, but the price difference is larger than you think. According to the report The Economist recently released, Norway is on the top of the Big Mac Index. Venezuela and Switzerland follow Norway with second and third place on the list. Norway is returning to the top spot, after Switzerland was briefly number one.
The Economist recently published the results of “Big Mac Index” which is, “a lighthearted guide to whether currencies are at their ‘correct’ level. It is based on the theory of purchasing-power parity (PPP), the notion that in the long run exchange rates should move towards the rate that would equalize the prices of an identical basket of goods and services (in this case, a burger) in any two countries.”
Enormous price differences
While a Big Mac costs $7.80 in Norway, you can get a Big Mac for $1.62 in India, the huge price difference is as much as $6.18. You will get almost 5 Big Mac’s in India for the price of one Big Mac in Norway. Indonesia, Ukraine, Malaysia, and South Africa follow India in the cheapest Big Mac price.