Status: Required Problem Statement Nowadays, most countries are involved in int

Status:
Required
Problem Statement
Nowadays, most countries are involved in international
trade, which requires them to convert their currencies into other countries’
currencies to make investments, and/or export or import goods. An essential
task of economists in any country is the exchange rate determination (or
prediction). Fluctuations in the
exchange rate, the prices many households pay to obtain foreign-made goods and
services are known as imports. For instance, in 2019, the total value of US
exports was 1.7 Trillion dollars, and the total value of US imports was 2.5
Trillion dollars.
Select two (2) countries (your
instructor must approve your choice) that are economically similar in terms of
their GDP per capita, unemployment rates, and inflation rates. For instance, the US and Canada can be
considered economically similar. The price index to be used can be the Consumer
Price Index (CPI) or the GDP Deflator.
You can visit the website Global Economy.com to easily compare countries
to check for similarity – https://www.theglobaleconomy.com/compare-countries/
Then use the price indices and
the exchange rate of these two countries’ currencies data to verify the
evidence of the theory of PPP.