Problems Involved in Comparing National Income between Countries

a) Differences in the definition of NY

A country that includes both goods and services in her calculation of NY will certain register a higher figure than one which only includes goods alone.

Hence, any comparison made would be misleading.

b) Differences in price level

It is important to consider the purchasing power of money in the respective countries concerned.

Thus, real income must be taken into consideration and not money income.

c) Differences in exchange rates

As NY figures are expressed in different currencies, they have to be converted to a universally accepted currency (e.g. US$) if comparsion between countries is to be made.

d) The availability of data

In less developed countries, the collection of statistical data is difficult because of poor accounting records, ignorance of the people and less sophisticated method of statistical compilation.

Hence, data are less reliable and comparison with developed countries will be inaccurate.

Email based economics assignment help - homework help at TutorsGlobe

Are you searching economics tutor for help with Comparing National Income between Countries questions?  Comparing National Income between Countries topic is not easier to learn without external help?  We at www.tutorsglobe.com offer finest service of economics homework help and economics homework help. Live tutors are available for 24x7 hours helping students in their Comparing National Income between Countries related problems. We provide step by step Comparing National Income between Countries question's answers with 100% plagiarism free content. We prepare quality content and notes for Comparing National Income between Countries topic under economics theory and study material. These are avail for subscribed users and they can get advantages anytime.

Why TutorsGlobe for homework help

• Higher degree holder and experienced tutors network
• Punctuality and responsibility of work
• Quality solution with 100% plagiarism free answers
• Time on Delivery
• Privacy of information and details
• Excellence in solving accounting questions in excels and word format.
• Best tutoring assistance 24x7 hours