New York for one dollar as in Tokyo for 360 Yen, the pegged nominal exchange rate at the time.
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Of course, someone can only eat out locally, so regional price differentials can persist; the Oslo and Cairo branches are not in competition.
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If a McDonalds patron in Oslo were able to eat in an identical Cairo restaurant at one quarter the price they would do so, and price competition would then equalize the Big Mac price throughout the world.
Less than perfectly tradable goods subject to distortions such as the Penn effect, for example, a lowering of prices in less wealthy place.
William Penn | Sean Penn | Doppler effect | Penn Relays | Penn | Mass Effect | Penn & Teller | Irving Penn | Special effect | Robert Penn Warren | Penn & Teller: Bullshit! | Penn Jillette | Michael Penn | Mass Effect 3 | Magnus effect | Dan Penn | Arthur Penn | Venturi effect | Penn Treaty Park | Mössbauer effect | Hall effect | Penn State Nittany Lions football | Penn Central Transportation Co. v. New York City | Jessie Penn-Lewis | Dawn Penn | sound effect | Mass Effect 2 | Kondo effect | Hall effect sensor | Gary Penn |