While looking at the real purchasing power we also

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While looking at the real purchasing power we also look at the purchasing power parity. Purchasing power parity is defined by adjustment in exchange rate conversions that takes into account difference in the true coast of living across countries. Purchasing power parity essentially compares different counties currencies. As a average movie ticket cost eight dollars and thirteen cents in the United States today, the average price of that movie ticket varies from country to country due to the currency. For example, Bahair ranks at number 1 with the ticket price in US dollars at seventeen dollars and forty-eight cents. While that price seems quite high to us, the Bahriain dollar equals to two dollars and sixty- five US dollars. So a average movie in Bahair cost them seven dollar in their currency. Purchasing power parity is very important because adjustments are made to exchange rates so that products have the same average price when sold all around the world.
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References Burton, J. (2015, December 22). How Much Are Movie Tickets Around The World? Retrieved January 31, 2018, from htps:// prices-around-the-world.html Robbins, S., Decenzo, D., and Coulter, M. (2011). Fundamentals of management: Essential concepts and applications (7th ed.). Boston: Prentice Hall. p. 109.
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