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2. Discuss relevance (pros and cons) of measures such(prenominal) as GDP, PPP rates, on-going market exchange rates, for countries magnet. Propose alternative measures and motivate in what way they are relevant. GDP is relevant to international attractor because is easily comparable to other countries and easy to calculate and close to countries calculate it and use it as a measure. Describes output per capita and is a good reflection of a countries standard of living, therefore it is assertable to infer the types of products and goods that will be consumed in an economy. As a cons its remarkable that does not consider the real comfort of cash instead it uses price; therefore intra-country comparisons may be flawed. Does not consider how the countrys wealth is distributed. besides fails to account for energy consumption effectiveness, which is adverse for energy apprised firms. PPP rates: what you can purchase in a country in relation to x amount of money compared to another country. Even if exchange rate fluctuates it is possible to prise the quality of life using PPP (as long as citizens purchasing power doesnt vary they are the same). swap rates: One of the most predominant determinants of international attractiveness.

If a countries exchange rate is strong, this damages its ability to export goods so this will deter export firms from locating there. However, imports will be cheaper which benefit the manufacturing sector encouraging firms to set up such operations. The stability of countries exchange rate is also key to its attractiveness as an international location. For example the GBP has become weaker against the Euro, making it cheaper for European countries to import goods from the UK, it has also meant that the UK is in a bad mail to exploit European opportunities. These measures are good indicators and they bring an boilersuit impression of the current macroeconomic situation of the country, it does not agree into account other important... If you want to get a good essay, order it on our website: Ordercustompaper.com

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