The iPod Index

In my previous post, using the nominal exchange rate we could compare the prices of iPods across countries. That was the simple version, and since it doesn’t take inflation into account, it won’t be as accurate. By calculating the Real Exchange Rate, we can get a more accurate answer to the question; which country has the cheapest iPod?

Barriers to Entry

Barriers to Entry are designed to prevent potential competitors from entering the market. Some barriers to entry are placed by the government, while others could be related to cost. These barriers result in different market structures such as monopolies or oligopolies (a few firms).