> It means that the value of Harley Davidson in India in US$ would be equivalent in the US when the price is 21.3x
You lost me here. Can you elaborate on this more please? When it came to data comparisons you literally did multiply 21.3 with 9 cents and arrived at the value of 1.91$ per GB. So how is your comparing data costs using PPP as a normalizing factor fine but not fine when it comes to me comparing cost of manufacturing an iPhone or a Harley Davidson in both countries? Your argument isn't consistent. How can you ignore exchange rate and only look at PPP and decide the cost of living? It just doesn't make sense to me. Sure PPP gives a rough idea about where countries stand relative to the US when it comes to purchasing power parity but, more often than not, it is too far off from ground reality.
Let me once again repeat what I have said and please take some time to listen and understand it
* You can not compare goods across two countries by simply taking the exchange rate, you need to normalise to account for different factors like disposable income
* I took PPP as the normalisation metric. It is not perfect but is meant for this purpose.
* If you are not happy with PPP as a normalisation metric, you can choose another one as defined by economists. If you want to come up with your own, you are also free to take another metric and agree with economists to use them. The metrics you have suggested are already considered in the PPP calculations. Look into them
Key Point : You can NOT compare good(s) across two different countries/currencies in absolute values.
> * You can not compare goods across two countries by simply taking the exchange rate, you need to normalise to account for different factors like disposable income
This is where you are wrong. You have to take exchange rate when calculating PPP. Which is what I have been trying to explain to you. You are completely skipping exchange rate, which is why you are getting an inflated figure of 1.91$ per GB.
You should be calculating it this way:
Exchange rate: 73.17 INR = 1 USD
Now 9 cents is, 0.09 USD = 0.09 * 73.17 = 6.58 INR.
Since PPP is 21.3,
6.58 INR would be 6.58 / 21.3 = 0.3 USD
So 9 cents in India is equal to 30 cents in USA. Now, that is 30 cents per GB and not 1.91$ per GB.
You lost me here. Can you elaborate on this more please? When it came to data comparisons you literally did multiply 21.3 with 9 cents and arrived at the value of 1.91$ per GB. So how is your comparing data costs using PPP as a normalizing factor fine but not fine when it comes to me comparing cost of manufacturing an iPhone or a Harley Davidson in both countries? Your argument isn't consistent. How can you ignore exchange rate and only look at PPP and decide the cost of living? It just doesn't make sense to me. Sure PPP gives a rough idea about where countries stand relative to the US when it comes to purchasing power parity but, more often than not, it is too far off from ground reality.