I have the average price of a GB of data / internet across 45 different countries. I want to be able to compare the price of using data on the people in that country.
Let's say 1 GB of data costs 1.37 USD in the USA and the equivalent of 1.1 USD (regular conversion rate) in China. I cannot state the the internet is "cheaper" in China than it is in the US, as 1.1 USD in China could buy so much more for a family living there and therefore is more taxing on their income than 1.37 USD would be on an American family.
How can I compare the effect that spending these 2 values could have on a family in these 2 countries? Would the purchasing power parity be the right way to go here? If so, can someone explain to me how to use it? I looked up the PPP in China, and it's 4.15.
I read online that to compare the price of the good across both countries we would calculate: 1.1 / 1.37 / 4.15 = 0.19. So the price of a GB of data is about a fifth of that in the US? And not almost the same? But that's not what I'm looking for, I'm looking for a number that would tell me that since life is so much cheaper in China, and spending a dollar is so much more taxing.
Wouldn't (1.1 / 1.37) * 4.15 = 3.33 make more sense? So spending 1 USD in the USA on internet would be equivalent to spending 3.33 USD in China for the same amount of internet?