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Review the Big Mac Index, The most recent Big Mac Index can be found at the following web address: http://www.economist.com/markets/bigmac/index.cfm. Incorporate answers to the following questions in a well-crafted essay response including supporting evidence for your discussion. Remember to cite any sources used, including the textbook (APA format is required).

Briefly discuss the history and purpose of the Big Mac Index. Where is it most expensive to buy a Big Mac? Where is it the least expensive to buy a Big Mac?

What factors other than currency overvaluation and undervaluation might contribute to these differences?

Based on the theory of purchasing power parity, what is likely to happen to these currencies against the dollar in the next few years?

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