You actually cant. A basket of goods is priced in its local context in a local market in perceived value of local currency. A product like milk is monopolized by a cooperative in Canada where I live and often 3-4 times expensive to an open market in the USA just across our borders. Currency value itself is perceived based on various factors, so a better way would be look at a basket of goods in one's local market and look at what it costs there in local currency for a certain quality of life. Then we can look at exchange rates to determine whether something is cheaper in a different currency due to the so called exchange value. That would be nearest one could do to compare the same products in different markets because this becomes something like comparing apples with oranges without this approach. Though they are all milk.
You actually cant. A basket of goods is priced in its local context in a local market in perceived value of local currency. A product like milk is monopolized by a cooperative in Canada where I live and often 3-4 times expensive to an open market in the USA just across our borders. Currency value itself is perceived based on various factors, so a better way would be look at a basket of goods in one's local market and look at what it costs there in local currency for a certain quality of life. Then we can look at exchange rates to determine whether something is cheaper in a different currency due to the so called exchange value. That would be nearest one could do to compare the same products in different markets because this becomes something like comparing apples with oranges without this approach. Though they are all milk.
Hi sri,
You have been to different countries recently
So how do you compare same product at all the 3 places
Say milk or vege or something that you can remember