The Big Mac index was introduced in the Economist in 1986. Ng Yat-chiu created it the Chief Executive Officer of McDonald's Restaurant of Hong Kong. The Economist publishes it annually as an informal way of measuring the purchasing power parity (PPP) between different countries. “The value of the Big Mac Index is in understanding that price differences are not sustainable in the long-term. Exchange rates will eventually have to more closely equalize price differences, or the law of supply and demand will take over. Of Course nobody is going to import Big Macs from China to the United States because they are so cheap, but if Big Macs are so cheap, so are other products, and trade flows could be influenced by price differences.” “UBS Wealth Management Research has expanded the idea of the Big Mac index to include the amount of time that an average worker in a given country must work to earn enough to buy a Big Mac. The working-time based Big Mac index might give a more realistic view of the purchasing power of the average worker, as it takes into account more factors, such as local wages.” The most expensive country to buy a Big Mac is in Norway where the costs is $5.79 and the cheapest is in Malaysia $1.52.
Prices of the Big Mac are affected by other factors such as taxes. Countries especially those in Europe that have higher taxes will have higher prices than countries with lower taxes. The prices are also affected by nontrade costs, such as rent and insurance. Lastly profit margins depend greatly on the amount and strength of the competition. If there is a high volume of competition the lower profits will be therefore lowering the price. Based on (PPP) a change in a comparison of the countries rates of inflation will cause a change in exchange rates to keep prices of goods across these countries as close as possible.
References:

Daniels, J., Radebaugh, L., & Sullivan, D. (2011). International business, environment & operations (13th ed.). Upper Saddle River, NJ: Prentice Hall.

Hoefert, Andreas; Hofer, Simone (2006). Prices and Earnings: A Comparison of Purchasing Power Around the Globe (PDF). 2006 Edition. UBS AG, Wealth Management Research. p. 11. Retrieved 2008-09-24.

The Polish relationship with the IMF is a perfect example of how the IMFs position of influences on an individuals nations economic policy especially a nation with a transitional economy. Poland was in the process putting into place effective stabilization and restructuring programs. This is one of the most clear-cut cases of conditional lending. What transpired in Poland during this timeframe shows very similar features of conditional stabilization programs. A great example is the political leverage that a recipient country, given the limits of conditionality, may enjoy, as they carried out unprecedented economic transition programs. “Polish authorities naturally had the dominant view in matters of sequencing, given their greater familiarity with domestic conditions. The failed 1992 EFF program also eased the performance criteria set by the IMF in the 1993 Stand-By Agreement, with the IMF more ready to acknowledge the economic constraints faced by Poland. Realizing the strategic and symbolic significance of its transition program, Poland expectedly exploited even more its leverage and creditworthiness, successfully negotiating a $ 1 billion stabilization fund and a substantial forgiveness of its official and commercial indebtedness.”
In Poland's case the IMF recessions certainly assisted with the recovery from transition recession, consistent decline in inflation, and the increased in foreign investment. The IMF with its relaxed criteria and financial backing made Poland a standard IMF stabilization model. “The key point is that relationships between international financial institutions and national governments need not be confrontational but rather, a consistent cooperative venture at solving specific, sometimes unprecedented, political and economic problems. Less central but no less important are lessons in viable safety nets, appropriate privatization, and more accurate measures and evaluation of real output decline.” When the IMF has collaborative efforts with governments it assist with more collaborative efforts at resolving and effectively addressing specific issues for specific economies.

Reference:

Daniels, J., Radebaugh, L., & Sullivan, D. (2011). International business, environment & operations (13th ed.). Upper Saddle River, NJ: Prentice Hall.

Tiongson, Erwin R. "Poland and IMF conditionality programs: 1990-1995." East European Quarterly 31.1 (1997): 55+. Academic OneFile. Web. 27 Dec. 2013.eference: