1.14.2016 - Review Characteristics of National Economies...

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Review Characteristics of National Economies & Measurement GDP GNP Per capita GDP (GNP) Exports Imports Terms of Trade Index of openness
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GDP vs. GNP GDP ( Geographic Definition ): The marke t value of all newly produced final goods and services within a one-year period in a country. GNP ( Resource Ownership ): The market value of all newly produced final goods a nd services within a one-year period that are from labor and property supplied by t he residents of a country.
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Index of Openness Index of Openness —a measure of how much a country participates in international trade; defined as the ratio of a country’s sum of expo rts and imports to its GDP (or GNP): [ (EX+IM)/GDP]*100 Open Economy —a country with a high value of the index of openn ess. Closed Economy —a country with a relatively low index of opennes s. Purchasing Power Parity Theory The theory that in the long run, excha nge rates move to equalize the purchasing powers of different currencies.
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  • Spring '16
  • Exchange Rate, United States dollar, dollar, ISO 4217, Big Mac

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