Flawed International Price Comparison
An international business analyst observes that a specific bicycle model costs 150,000 Japanese Yen in Tokyo and 1,200 U.S. Dollars in New York. The analyst concludes that the bicycle is significantly more expensive in Tokyo because the number 150,000 is much larger than 1,200. Explain the fundamental error in the analyst's reasoning and describe the essential piece of information and the calculation needed to make an accurate price comparison.
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