Iceland's Economy Forces McDonald's To Close

McDonald's has become the latest victim of Iceland's exposure to the world financial crisis. The country's three McDonald's — all in the capital Reykjavik — will close next weekend. The franchise owner says the country's currency has made it too expensive to import ingredients. Under an agreement with MacDonald's, he has to import everything from Germany.

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STEVE INSKEEP, host:

And our last word in business today is not-so-golden arches.

Iceland has had an especially painful year because of the financial crisis, and many residents of the island nation have lost their jobs. Three of the biggest banks have collapsed, and now they're losing their Big Macs. The McDonald's franchise owner there - there is one - announced he's shutting down because the collapse of the country's currency has made it too expensive to import ingredients.

Under an agreement with McDonald's, he has to import everything from Germany, and he says he would've had to jack up the price of a Big Mac to more than $6 to make a profit. Instead, all three of his outlets will shut down.

And that's the business news on MORNING EDITION from NPR News. I'm Steve Inskeep.

RENEE MONTAGNE, host:

And I'm Renee Montagne.

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