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