Using the formula in the Big Mac Index interactive site, how much is the Big Mac overvalued in the most expensive country, and how much is it undervalued in the least expensive? Which countries would be the cheapest for travel, and which would be the most expensive based on this index?
According to the Big Mac Index interactive tool on The Economist website
(Jan 2020), solely looking at the Raw index calculation, Switzerland is the
most expensive country suggesting the overvaluation of the Big Mac at +18.4%.
Based on this website, the most undervalued country is South Africa at
-62%.
In the least expensive country it is undervalued at:
Based on this raw index, here are the countries that would be cheapest
for travel:
Based on this raw index, here are the countries that would be most
expensive for travel:
Read the Leffel chapter and the other links provided to derive a list of the 10 cheapest countries for travel.
10. Indonesia
9. South Africa
8. Turkey (currency valuation)
7. Argentina (currency valuation)
6. Phillipines (Cheapest in Eastern Hemisphere)
5. Cambodia
4. Nepal
3. Vietnam
2. Mongolia
1. Mexico (Cheapest in Western Hemisphere)
After
reviewing safety tips for each respective country from the list above, I read
various travel blogs and traveler's guides on budget friendly places they’ve
visited. I then compared websites and notes and looked at the most inexpensive
countries and found a site that would estimate the cost of activities,
entertainment, public transportation fares, cost of food, and drinking water
procurance costs. I used the skills from the previous assignment to find a
cost-efficient flight, which narrowed my selection to China, or the
Philippines. Some variables to consider when looking at hostels was how many
people would be in a room in respect to how many bathrooms a location had. I
also considered reviews and location in respect to being an accessible area by
either public transportation or in worst case, rental car. In addition, I
referenced local restaurants with the budget travel website where travelers would
update their notes and cost estimates from their travels. I found that
sometimes a country may be inexpensive to travel through, however the flight
would be very expensive, this was the case for Mongolia. I almost selected
China because it was so inexpensive to travel to, however in this case, daily
costs for shopping and food and other leisurely activities amounted to spending
over $130 per day. So that narrowed my choice of traveling to Manilla, where
one could spend their days on the beach, or exploring their many jungles and
other natural wonders.
Flight $831, Lodging $126, Food: $168, total $1125
Flight:
Lodging:
Estimate of Probable Travel Expenses:
I used the same method for the Eastern
hemisphere. In this case, I found it was common to choose a trip to Mexico due
to the combination of inexpensive airfare, food, lodging, and leisurely
activities. The main challenge in Mexico is in finding suitable lodging at an
inexpensive rate that is not a hostel. After reviewing with Airbnb, I found a
suitable location for $14 that I thought had great value. Again, I considered
safety, location, ease of access to roads, and ultimately an affordable
airfare.
Flight $284, Lodging $306, Food: $37.80, total $627.80
Flight:
Lodging:
*Updated Image on Mar 5
Estimate of Probable Travel Expenses:
Consider the safety factor in the destination you have chosen. Take a look the Global Peace Index rankings (A ranking of countries based on the Peace Index begins on p. 8.) Which country would be the safest? Where is the United States ranked? Where do your chosen countries rank?
According
to the Peace Index, Iceland remains the most peaceful country in the world,
followed by New Zealand, Austria, Portugal, and Denmark.
My chosen countries: The Philippines ranked 134, with a score of 2516, up 4
ranks since 2018. Mexico ranked 140, score of 2,600, up 1 rank since 2018,
The United States is ranked at 128, with a score of 2,401, down 4 ranks since
2018.
"You'll learn far more than you ever did at a university.
Remember the old days when people got a liberal arts education? They went to
Oxford or Princeton to learn about history, politics, social studies,
geography, religion, foreign languages, and economics. Well you'll learn far
more about all those things by traveling than you ever can in college. Ask
anyone in their 30's how much they remember about these subjects from their
university classes. "Not much" will usually sum it up."
I believe travel enhances a learning
experience. Taking classes at a university ignites an individual’s curiosity,
it pushes a student to think critically and should provide the tools to guide a
student’s mind. Receiving a formal education in subjects typically taught at a
university enables students to find solutions for realized problems. In
combination with a formal education, travel offers a new perspective on
different circumstances around the world, it can make someone appreciate things
they have previously taken for granted and it may help open eyes to experiences
of other people in certain regions; to include what they go through, how they live
their everyday lives, and the certain challenges they face in their respective
environment.
In
the modern world that we live in, resources on the internet are readily
available for individual use. However, a large majority of information on the
internet seems to be narrowing in accessibility, forcing users to subscribe
with their email or charging various membership fees to gain access to quality
information. For example, I recently learned that certain publishers featuring
academic articles charge fees that go directly to the publishing site instead
of the author or researcher.
Submitted by Suzanne Lopez on 28 Feb 2020.