Post on 21-Jan-2017
transcript
HOW MUCH ISTHAT….?
Guess the price for each Chinese item and then if it’s higher or lower in each
other country
Thumbs up = HigherThumbs down = Lower
A CAN OF COKE
HOW MUCH DOES THIS COST IN CHINA?
$0.44or
2.77RMB
In the USA $1 or 6 RMB
In South Africa $0.73 or 5 RMB
In Russia $1.41 or 9 RMB
A BIG MAC
HOW MUCH DOES THIS COST IN CHINA?
$1.31or
8.27 RMB
In the USA $3.29 or 20 RMB
In South Africa $2.30 or 14 RMB
In Russia $1.78 or 11 RMB
4GB iPOD NANO
HOW MUCH DOES THIS COST IN CHINA?
$299Or
1900 RMB
In the USA $249 or 1578 RMB
In South Africa $321 or 2027 RMB
In Russia $299 or 1900 RMB
NIKE TRIAX
HOW MUCH DOES THIS COST IN CHINA?
$89or
562 RMB
In the USA $90 or 562 RMB
In South Africa $181.59 or 1150 RMB
In Russia $126.71 or 795 RMB
GDP per capita•USA $44,000 or £22,000
•UK $31,800 or £15,900
•CHINA $7,700 or £3,850
•SOUTH AFRICA$13,300 or £6,650
•RUSSIA $12,200 or £6,100FIGURES IN US$SOURCE:https://www.cia.gov/library/publications/the-world-factbook/
What is PPP?• What do you notice about
the price differences?
• What proportion of their average income must people in each country spend to get these goods?
• Why do people in different countries want to buy these goods?
• What is purchasing power parity? – write a definition of PPP in your books!
Can wealth data be trusted?• On your own rank the GDP (per capita)
and PPP for the 10 countries. • In groups try to explain why they do not
match perfectly.• In groups, come up with 3 reasons this
type of wealth data may not be trustworthy
Homework• It’s time now to live the billionaire lifestyle with a
jet-set holiday.• Your billionaire uncle has given you £500
spending money (very generous!) for a holiday to a European destination of your choice AND somewhere in Africa (not Egypt or South Africa).
• Being a billionaire he’s already paid for your travel and accommodation.
• Find out how long £500 will last you by researching spending costs on the Internet
• Use www.numbeo.com to start