Purchasing power parity

It is often necessary to compare values and volumes of different products in different countries. For example, when travelling abroad, one frequently wants to know the price of a coffee or a bus ride, or the cost of buying a book at the destination. The nominal or market exchange rate is generally used for this calculation. The exchange rate between two countries is the price at which trade takes place between them, in other words, the relative price of the two countries’ currencies.

Sustainable Development Goals:

Decent Work and Economic Growth

Responsible Consumption and Production