It fails to account for foreign earnings- thus resulting in a false perception of the development gap. This is because wealthier countries have a larger proportion of their wealth produced abroad therefore, without this, their GDP seems more similar to that of a lower income country compared to the reality.
The adavantage of using GDP is it shows how much you have grown capared to the nations around you. The bad thing is that it does not show the inflation. With GDP you can not compare a country from year to year. But there is a solution. Use Real GDP, this uses a fixed price, and it shows how much you are really producing from one year to anouther.
What are some disadvantages or advantages in chemical energy?
Disadvantages... Not accurate as data is unreliable. It doesn't measure politics or gender equality Advantages.. Good composite indicator - gives us more of an idea than just GDP or life expectancy Easy to rank countries as it is a uniform measure
The disadvantages and advantages of collusion
The advantages of using GDP include the measurement of total domestic consumption. Total domestic investment expenditures and net exports are also clearly measured with the use of GDP.
What are some advantages and disadvantages of being a dentist
what are some advantages and disadvantages about being a teller
what are some advantages and disadvantages of dictatorship
what are some advantages and disadvantages of child care service
What would be some disadvantages
No Advantages Disadvantages Only
what are the advantages and disadvantages of trial by combat
Disadvantages--it may offend some people. Advantages--remind one of spiritual path.
There are no advantages, and the disadvantages are only because of prejudice and hate. One day, there will be no disadvantages either.
Advantages and Disadvantages of equity
advantages and disadvantages
some disadvantages are that the weather is to hot. the advantages are that it is sometimes cold