Purchasing Power Parity and the Big Mac Index Essay

Purchasing Power Parity and the Big Mac Index - Essay Example On the other hand, a US Dollar has more purchasing power than a Pakistani or Indian Rupee. These differences are usually because of availability and demand for the goods amongst other factors. By taking an international measure and determining the cost for that measure in each of the two currencies and comparing them we can solve this problem. (McGuigan, 2008) This formula represents the exchange rate of one currency in relative terms to another currency. P1 is the price of an item in one currency while P2 is the price of the same item in another currency (Investopedia, 2008). Although according to this theory, the relative prices for a same product should be equal in two different locations. However we rarely see this happen. This theory doesn't even hold true in areas inside a city. For example in a high end posh area of a city might sell the same product at a much higher rate than the shop set up in a low end area. This brings us to the most popular example of purchasing power parity, the Big Max Index. Calculated by the Economist Magazine, the Big Mac index is used to find the exchange rate to determine the value of other items. Since McDonalds is virtually in every country, this index is readily applicable. All we need is the price of Big Mac in the two countries we need to find the exchange rate of. For example a Big Mac in US costs around $4 while a Big Mac in India costs Rupees 200 thus the index will be $1 equivalent to Rs. 50. This index is used further to get an idea of the actual exchange rate in the market and to determine the relative value of other items. (McGuigan, 2008) The main use of the index is to find the GDP and hence the standard of living of the people in a certain location. When we are determining the Gross Domestic Product of a country, a fall in the value of the currency relative to another base currency, will make the GDP fall by the same value. Taking the same example of the Indian Rupee and the US Dollar, a fall in the Rupee by 50%, will force the GDP expressed in US dollars to drop to 50%. This piece of information does not reflect true picture of the situation since the devaluation of the Indian currency maybe due to the international trade issues. However when we look at each day's exchange rates of the Dollar to the Rupee, we see fluctuations coming each day. But when we use the Big Mac index, these fluctuations are not reflected into the price of Big Mac each day. The price of the Big Mac remains to be Rs. 200 for quite a while even though the value of Dollar is increasing. Purchasing Power Parity - Analysis When we talk about the long-run, the purchasing power parity theory tells us that differences in the prices of the items in different countries are not sustainable as forces acting in the market place will equalize prices between countries and change exchange rates in doing so. Consider an example of a person who finds that the price of tomatoes is $5 lesser in another state. Traveling to the other state will cost the person $50 in fuel, thus just to save $5, this trip will incur a loss to the person. But when you consider bulk purchase this scenario comes out to be completely

Feminist Analysis of Pop Culture Essay Example | Topics and Well Written Essays - 1750 words

Feminist Analysis of Pop Culture - Essay Example Women were projected as mere puppets, and men became all the more chauvinist and domineering. Thus, a need for Third-wave feminism arose, which could deal with the changing norms of objectification. The third-wave feminism provided a strong base that not only transferred the improper objectification in the favor of women, but also upheld womanhood irrespective of race, color, ethnicity and sexual-orientation. Literature and media gained influence from Third-wave and hence, a new-age approach towards feminism developed. This paper is an attempt to identify the core beliefs of new form of feminism, and will analyze its representation in media through a movie that follows similar lines. For this paper, acclaimed director Zack Snyder's year 2011 movie Sucker Punch has been selected to be reviewed, which comprehensively displays post-feminist discourse and entails a convincing portrayal of third-wave feminism in popular culture forms. Understanding Third-Wave Feminism: Feminism in contemp orary era has evolved into a modernized (I-e well-acquainted with the current scenarios) avatar known as the post-feminist approach. According to Judith Butler, the very essence of third-wave feminism implies that â€Å"challenging gender roles alone will be inadequate to effect social change. The new goal for feminist and sexuality movements should be to defy the faith in the existence of an innate sexuality and natural sex categories† (Hull 54). The theory entails that women do not need to fight for gaining self-identity, or long to change the sex-based symbolism in a male-oriented society. Instead, it suggests that women should acknowledge their womanhood and use it to empower themselves; instead of despising being a female, they have to use their femininity for achieving the maximum benefits. Constructivism rules this new doctrine. According to Leslie Heywood and Jennifer Drake â€Å"contradiction marks the strategies and desires of third-wave feminists† (Zeisler 1 16). Empowerment is the best word that can describe the approach of this barely structured but extremely powerful theory of feminism in the present age. It cleverly switches gear and transforms significant norms that targeted women before into a tool for them. That is because stereotypical concepts and images that were termed as embodying womanhood, actually were a product of male preferences. The discrimination based on color, physique and race, and â€Å"mirroring the erasure of black womanhood from pop culture† emerged because they preferred white women (Hooks 264). Sex-display genre, which included pornographic images, restrictive attires like corsets, performances like erotic dances, and strip-tease, etc., developed to further objectify women and they became entities of gaining pleasure only (Nally 621). Third-wave feminism re-applied these self-induced norms from a female-benefiting perspective. The take of contemporary females of pop culture, and eminent third-wave act ivists on the genre of sex-display has been an ironic one, and as per Judith Butler’s queer theory, it is also comical. A culture of giving men what they want to see but at the same time being in control and making fun of male preferences started off convincingly with Madonna, and has come of age now with the likes of Lady Gaga, Gwen Stefani and Kei$ha (Halberstam 8). Rachel Shteir describes that today â€Å"