How does the ranking of spending by larger nations compare depending on which method is used to convert into a common currency?

Business

1 answer:

tatuchka [14]3 years ago

8 0

Answer:

There are two basic ways of comparing spending between different countries:

By using the official exchange rate and their nominal value. Since the US dollar is the most "powerful" currency in the world, local currencies are exchanged to US dollars, then spending is measured in nominal US dollar values.
Purchasing power party uses the US dollar as the base currency for the world and then compensates for changes in the exchange rates. This is usually more accurate since it compensates the fact that less developed nations are cheaper than rich developed countries. For example, a house in Switzerland is worth much more than a similar house in Mexico, therefore, the PPP compensates for this differences.

You might be interested in

According to the Jo-Hari window model, what are blind spots?

cricket20 [7]

According to the Jo-Hari window model, blind spots C.) SOMETHING THAT THE SENDER DOESN'T KNOW BUT THE RECEIVER DOES.

Blind spots are facts known to others but not known to self.

Other factors in Jo-Hari window model are Arena, Facade, and Unknown.

Choice A is Arena
Choice B is Facade
Choice D is Unknown

5 0

3 years ago

Which of the following describes the goal that should be pursued when setting transfer prices? Minimize opportunity costs. Maxim

nata0808 [166]

Answer:

Establish incentives for autonomous division managers to make decisions that are in the overall organization's best interests (i.e., goal congruence).

4 0

4 years ago

Read 2 more answers

Marcus set a goal to buy a used car in the next few months. He plans to make a $2,500

Lelechka [254]

I believe that it will take Marcus 8 months to save 2,500 since he already has 1,300 if you subtract that from 2,500 you get 1,200 and 150 x 8 = 1,200

6 0

3 years ago

Throne Technical University is looking for three people to work in its plant-biology laboratory. The hiring manager is finding t

FromTheMoon [43]

The answer is A as the potential workers aren’t willing to move so they aren’t flexible

4 0

3 years ago

Economic analysis is used only by policy makers to make policy decisions. only by business people to raise profits. only by inst

Free_Kalibri [48]

Answer:

The correct answer is: in all decision making.

Explanation:

Economic analysis is used in all walks of life, in decision making. It is not only relevant for policymaking or in business or for students. Rather, it is used in day to day life as well.

Almost all the decision we make is based on cost-benefit analysis. It used by households and individuals for utility maximization. It is used by businesses for profit maximization and is used by policy makers for welfare maximization.

5 0

3 years ago