Tuesday, October 27, 2009

The McFarthest Spot part 2

If you're in the United States it's pretty tough to get away from a McDonald's, but in Iceland it is the opposite problem, with all three of the country's McDonald's slated to close this weekend.

Iceland has suffered more than most countries from the financial crapout of the last couple of years with its three largest banks collapsing during the crisis. Iceland's external debt stands at about €50 billion, which is about six times the county's 2007 GDP.

Needless to say the banking failures have had an impact on prices. McDonald's requires that all the supplies (packaging, frozen burger patties, etc.) be imported to Iceland from Germany. The fall of the Icelandic kr√≥nur against the euro has made this arrangement financially untenable with costs doubling over the past year. A Big Mac in Reykjavik already sells for the equivalent of US$5.29, but Lyst Hr., the Icelandic franchise owner was looking at having to raise the price to the equivalent of $6.36. Switzerland and Norway currently share the dubious honor of having the highest priced Big Mac at $5.75.

For those of you who think that avoiding the Golden Arches is a good thing there are other countries that do not have any McDonald's, including Barbados and Bolivia.

Wikipedia (photo)

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