Now using the Currency Conversion Worksheet that your teacher provided, you are going to convert the price of Big Macs from the local currency to US dollars. Please read the following directions before you begin.

The following link will take you to the "Oanda Currency Converter."

1. Click in the box to the right of the words "Convert amount."
2. Type the price of a Big Mac in one of the local currencies . For example, for Canada that would be 2.79.
3. Scroll down the list of currencies on the left until you find Canadian dollars. Click on the term Canadian dollar.
4. Go to the list on the right and scroll down and click on US dollars.
5. Click on the "Convert Now!" button. This will show how much the Big Mac cost if you converted the Canadian dollar cost to US dollars.
6. Write this amount in space provided in the worksheet.
7. Repeat the process from step 1 to convert the other prices of Big Macs on your list.
8. Use the "Back" button in your browser to return to this page.

Now go to the " Oanda Currency Converter" and fill in the worksheet.

So, in which country is a Big Mac the most expensive in US dollars? The least expensive? Were you surprised? With this price difference, could you make a profit buying Big Macs in one country and selling them in another?

Even if a Big Mac cost the least in Russia, it wouldn't be profitable for someone to buy Big Macs in Russia and then sell them in the US. Hamburgers are best when they are fresh, and a Big Mac shipped from Moscow to Baltimore would be a bit stale.

Products not as perishable, however, may be bought in one country and sold in another for a profit. That is why international trade is so important for countries today.

Conclude the lesson by clicking the "Ahead" button below.