These Web Analysis' represent the application of the financial tools and techniques you have been learning. These problems require thorough analysis and interpretation of the findings into operational plans and reports. It represents the way financial managers use this type of quantitative analysis in formulating the operational strategies for their companies. This type of financial analysis is very desirable because it contributes to the decision making process by providing facts that can be solidly supported by quantitative data and analysis.

One of the most famous examples of a violation of absolute purchasing power parity is the Big Mac index calculated by The Economist. This index calculates the dollar price of a McDonald's Big Mac in different countries. You can find the Big Mac index by going to www.economist.com. Using the most recent index, which country has the most expensive Big Macs? Which country has the cheapest Big Macs? Why is the price of a Big Mac not the same in every country?

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