In Latin America, McDonald's largest franchisee is Arcos Dorados Holdings, with headquarters in Montevideo, Uruguay. McDonald’s is a worldwide operating fast food restaurant chain with headquarters in Oak Brook, Illinois. The Big Mac, as the top-selling McDonald’s burger, is used for comparison because it is available in almost every country and manufactured in a standardized size, composition and quality.

As many countries have different currencies, the standardized Big Mac prices are calculated by converting the average national Big Mac prices with the latest exchange rate to U.S. The Bic Mac index has been published annually by The Economist since 1986 and is rated as a simplified indicator of a country’s individual purchasing power. dollar), the price of a single product (the McDonald's Big Mac) should sell. Although the increase in comparison to the previous years, the Big Mac burger price is still one of the lowest in Latin America. The idea is that once different currencies (pesos, pounds, rubles, etc.) are converted to a common standard (the U.S. Mexico is 10 pesos/1.00, it should cost 25 pesos in Mexico. A Big Mac costs 20.90 yuan in China, which would. For example, if a Big Mac costs 2.50 in the U.S., and the exchange rate with.

The average price for a Big Mac burger in Mexico was estimated at 3.34 U.S. The Index also reveals that major economies like China have been left short changed by official exchange rates. The so-called Big Mac index is regarded as an indicator for the purchasing power of an economy.

Big mac index example with pesos