China's Economy Just Overtook The U.S. In One Key Measure
http://www.huffingtonpost.com/2014/10/08/china-gdp-tops-us_n_5951374.html. DUE 20 OCT 2015. What is the one key measure that allowed China to be number one? What is purchasing power parity and why does it matter?
It was reported that China’s economy recently became the largest in the world. China’s gross domestic product is at $17.6 trillion and the United States gross domestic worth is at $17.4 trillion, making it only a $0.2 trillion difference. One key measure that allowed China to be number one is the fact that they have been trying to manipulate their currency to make it worth less than a dollar. In doing this, it makes items in China much cheaper than if people were to buy things in the United States. The more people that begin to buy things in China, the more the Chinese economy will grow. People are going to begin to make purchases more often in China than in the U.S. Another reason why their economy is doing so well is that it is much cheaper to live in China than to live in the United States. According to investopedia.com, “purchasing power parity is the exchange rate between countries in order for the exchange to be equivalent to each currency's purchasing power or in other words, the exchange rate adjusts so that an identical good in two different countries has the same price when expressed in the same currency.” Purchasing power parity matters because if economies were compared without putting them in equal terms, you wouldn’t have an accurate measure of which ones were doing better. Purchasing power parity makes comparisons as accurate as possible.
The key measure that allowed China to surpass The United States was the manipulation of their currency. A Chinese Yuan has the value of $0.16315 in the United States. China has completely lowered the price of living within the country. This is why it is cheaper to buy goods from China then within the United States. Investopedia defines purchasing power parity (PPP) as "an economic theory that estimates the amount of adjustment needed on the exchange rate between countries in order for the exchange to be equivalent to each currency's purchasing power". This matters because you can't compare one economy to another if their monetary values are unequal. PPP makes evaluating another economy as closely equivalent as possible.
China's population is 1,367,040,000 and the United States population is 318,912,000. So China is defiantly over populated with people. China is the largest country in the entire world. Their economy has recently became the largest in the world. The one key that China was doing was trying to manipulate their currency. They are trying to make their money worth less than the United States. China is doing all of this because it helps make their stuff cheaper than the United States stuff on global market. According to the article, it said that "It is crazy cheap to live in China and crazy expensive to live in the U.S., so a trillion U.S. dollars are worth a lot more in China than in the U.S." So one dollar in US would be worth so much in China. Which makes more people buy things they need from China. From people buying more things and materials from China, it boosts China's economy up. The article states that the United States economy still dwarfs China's, at $17.4 trillion to $10.4 trillion. According to http://www.investopedia.com/terms/p/ppp.asp purchasing power parity (PPP) is an economic theory that estimates the amount of adjustment needed on the exchange rate between countries in order for the exchange to be equivalent to each currency's purchasing power. It matters because you wouldn't be able to compare one economy to a different one, also you wouldn't have a accurate measure. PPP makes comparing or analyzing another economy much easier.
The one key measure allowing to china to be number one is the manipulation of their currency. According to the article "It is crazy cheap to live in China and crazy expensive to live in the U.S., so a trillion U.S. dollars are worth a lot more in China than in the U.S." So China has a much cheaper standard of living and also many more people, at over billion. Now that China is cheaper many countries flock there to buy product. Purchasing power parity is an economic theory that estimates the amount of adjustment needed on the exchange rate between countries in order for the exchange to be equivalent to each currency's purchasing power. It matters because we use it to compare different currencies so that when we analyze them we can have better facts. And it gives us an accurate rate. SAM MOHAMMED
China's gross domestic product is worth $17.6 trillion. Their GDP was adjusted for China's relatively low cost of living as compared with $17.4 trillion for the U.S. China's share of the global economy is now slightly bigger than America's, at 16.5% to 16.3%. China is manipulating its currency to be worth much less than the dollar. They're using this tactic to help make Chinese goods cheaper than U.S. goods on the global market. GDP breaks down to nearly $55,000 per capita per year in the U.S., as compared with less than $8,000 per person in China. Figures are adjusted for the relative costs of living in both countries, which is known as purchasing power parity. It's something economists do to try to make comparisons between countries more fair. PPP is important because of the idea that identical items in different countries should have the same "real" prices. The reason for this is that a consumer should be able to sell an item in one country, exchange the money received for the item for currency of a different country, and then buy the same item back in the other country and not have any money left over to be fair.
It has been stated in the article that it only took one important measure in order for China to be the biggest economy in the world, topping the United States of America. China has a gross domestic product worth $17.6 trillion and the United States having a gross domestic product worth $17.4 trillion. The difference between each places were close although China took the lead. Another factor that leads to this conclusion is the fact that China's global economy is now a bit bigger than that of America's. China has 16.5% whereas America is at 16.3%. Although there are other leading factors into the result of China becoming number one biggest economy, the main key measure for this was China is manipulating its currency to be worth much less than one dollar. They are doing this in order to help make Chinese stuff cheaper than that of in the United States on the global market. Many people are going to start making their purchases from China due to the cost being such a reasonable price whereas other places are more expensive. Especially as people are struggling with the economy, as of now China is producing things at a cheap cost which will increase the people making purchases from them and decrease purchases made other places. I believe that eventually many people will start moving to China due to the low costs. The United States economy still dwarfs China's, at $17.4 trillion to $10.4 trillion. According to investopedia.com, it is an economic theory that estimates the amount of adjustment needed on the exchange rate between countries in order for the exchange to be equivalent to each currency's purchasing power. This can be equated using the formula, S=pv1/pv2. Where: "S" represents exchange rate of currency 1 to currency 2 "P1" represents the cost of good "x" in currency 1. "P2" represents the cost of good "x" in currency 2. This matters because it makes it easier to compare and analyze economies.
China has a population of more than 1.3 million. This is one fifth of the world's population. China now has the biggest economy globally. China's gross domestic product is greater than America's at 17.6 trillion dollars. The purchasing power parity contributes to this number. The purchasing power parity is defined as the component of some economic theories. It is also a technique used to determine the relative value of different currencies. Purchasing power parity matters because the comparison of incomes shows were it is better to live. China would be a better place to live. American living costs a lot. The American dream is very hard to achieve nowadays. The difference between China and America is freedom. In China there is a communism. America on the other hand gives people free will to live as they wish for the most part. China is a great place to live for a daily “discount" though. China knows how to manipulate their currency. China now has a great factor sector that is helping with their economic growth.
People want more for less. In order for a gas station to make more money is that it sets its gas prices lower than the neighbouring gas stations, so that way people go to cheap instead of more. That's what China did. They tried to make thier currency worth less than the US currency which gave them a plus 1. That was thier key success. China's gross domestic product worth is $17.6 trillion dollars while America's gross domestic product worth is $17.4 trillion. China's global economy is also on the lead.
China's population is blooming incredibly, and the United States population is one third of the size. The economy in China has recently became the largest in the world the one key that China was doing was trying to manipulate their currency. They are trying to make their money worth less than the United States. The more people that begin to buy things in China, the more the Chinese economy will grow. People are going to bring to make purchase more often than in the U.S. Another reason why their economy is doing so well is that it is much cheaper to live in China than to live in the United States. According to investopedia.com, "purchasing power parity is the exchange rate between countries in order for exchange to be equivalent to each currency's purchasing power or in other words, the exchange rate adjusts so that an identical good in two different countries has the same price when expressed in the same currency."
Apparently, China’s economy has recently become the largest in the world. The GDP in China I at a staggering $17.6 trillion while the United States is at $17.4 trillion. One thing that China has been trying to do is manipulate their currency so that it becomes worth less than one dollar. By doing, it creates the illusion that products are much cheaper than those in the United States, so people are more inclined to buy things. This will in turn boost the economy, because people are purchasing more things than they are in the Unites States. Another reason why they are doing so well is that the cost of living in China is much cheaper than living in the United States. According to investopedia.com, “purchasing power parity is the exchange rate between countries in order for the exchange to be equivalent to each currency's purchasing power or in other words, the exchange rate adjusts so that an identical good in two different countries has the same price when expressed in the same currency.” Purchasing power parity is important because if world economies weren’t compared in equal terms, the data would not be accurate, leading to false information. But, with purchase power parity, it makes the data as accurate as possible.
China’s economy has recently become the largest in the world. China’s GDP has soared to $17.4 trillion while the United States’ is $0.2 trillion lower at $17.4 trillion. Key factors that have allowed China to be number one in the world include China changing their currency to make it worth less than the dollar and because of this people from the United States buy goods in China therefore increasing their economy. China’s economy is also larger because it’s extremely cheap to live in china, so imagrants travel to China to start new lives instead of anywhere else because the cost of living is extremely low. According to investopedia.com purchasing power parity is the exchange rate between countries in order for the exchange to be equivalent to each currency's purchasing power or in other words, the exchange rate adjusts so that an identical good in two different countries has the same price when expressed in the same currency. Purchasing power parity is very important in the economic world because it puts economies on level playing fields and without it there would be an inaccurate measure of economies.
The one key measure that allowed China to be number one is gross domestic product its at 17.6 trillion dollars and United States is at 17.4 trillion dollars. Purchasing power parity is also a big deal; It is crazy cheap to live in China and crazy expensive to live in the United States so a trillion U.S. dollars are worth a lot more in China than in the United States. The United States economy still dwarfs China's, at $17.4 trillion to $10.4 trillion. This is why everyone buys from China because its way cheaper than buying straight from the United states this is because China is manipulating its currency. Plus China's booming factory sector has, in turn, helped make China's economy rapidly get bigger and bigger.
The one and only key measure that has allowed China's economy to be number one in the world is in growth domestic products. China's growth domestic product is at $17.6 trillion while United States is at $17.4 trillion. China's goal is to manipulate its currency to be worth much less than a dollar. Applying this method will help make Chinese items cheaper than U.S items on the market. So what will happen now is that consumers will start purchasing from the Chinese market rather than the American one. This method has made China's economy grow increasingly fast. According to investopedia.com, power parity is an economic theory that estimates the amount of adjustment needed on the exchange rate between countries in order for the exchange to be equivalent to each currency's purchasing power. This is essential for China's economic system, just one example is the cost of living which in China is so much cheaper than in the U.S. Economists have their own symbols and with that formulate an equation. "S" representing exchange rate of currency 1 to currency 2 ,"P1" representing the cost of good "x" in currency 1 and "P2" represents the cost of good "x" in currency 2. With this they formulate the following equation S= P1/P2, allowing for precise comparisons.
China’s economy recently became the largest in the world. China’s gross domestic product is at $17.6 trillion and the United States gross domestic worth is at $17.4 trillion.Their economy has recently became the largest in the world. One key measure that allowed China to be number one is the fact that they have been trying to manipulate their currency to make it worth less than a dollar; making it worth less than the united states.In doing this, it makes items in China much cheaper than if people were to buy things in the United States. According to the article, The more people that begin to buy things in China, the more the Chinese economy will grow.Another reason why their economy is doing so well is that it is much cheaper to live in China than to live in the United States. The article states that the United States economy still dwarfs China's, at $17.4 trillion to $10.4 trillion.According to investopedia.com, “purchasing power parity is the exchange rate between countries in order for the exchange to be equivalent to each currency's purchasing power.Purchasing power parity matters because if economies were compared without putting them in equal terms, you wouldn’t have an accurate measure of which ones were doing better. PPP makes comparisons as accurate as possible. it also makes comparing or analyzing another economy much easier.
It comes as no surprise that China’s economy has trumped the United States, now being the largest economy in the world. In recent reports it was found that China’s gross domestic product (GDP) is $17.6 trillion, beating out the US, $17.4 GDP, by a mere 20,000 thousand dollars. The overall cost of living in China is a lot cheaper than someone trying to make a living in America. To make the comparison between countries more fair, economists use the term purchasing power parity; which means to adjust the figures for the relative cost of living in both countries. Purchasing power parity is important because it puts every country on the same level when being compared to another. The one key action that allowed China to become number one was the fact that they manipulate their currency to make it worth less than a dollar. It may not affect America directly, but on the global market the Chinese goods and services are much cheaper than American goods. It seems as though Americans should be mad about this but in reality they are benefiting from this also since they purchase Chinese goods. But allowing China to manipulate the value of a dollar to a cheaper monetary value, their economy is just going to keep getting bigger and bigger. On average, a US worker makes about $55,000, while the average Chinese worker makes $8,000 annually. But then again that $8,000 is worth more so it goes a long way.
There is no surprise to hear that China’s economy recently became the largest in the world, beating out the U.S. China’s growth domestic product is at $17.6 trillion, and the U.S.’s is slightly lower, only at $17.4 trillion. Still, there is a small difference between the U.S. and China, which is helping China in the long run. One key measure that allows China to be number one is that they are manipulating their currency so that it becomes less than one dollar. From this, it gives off the impression that the things they are buying are cheaper, leading them to purchase more. In time, this will boost the economy from people buying more goods. An additional reason as to why China’s economy is doing better than the U.S. is because it’s cheaper to live in China versus the U.S. Purchasing power parity is the exchange rate between countries in order for the exchange to be equivalent to each currency’s purchasing power. (via investopedia.com) Purchasing power parity matters because it puts all the world’s economies on even ground, giving the ability to see accurate data.
China's economy is now the largest in the world, their gross domestic product is currently worth $17.6 trillion while the U.S. has a GDP of $17.4 trillion, the primary factor of this $0.2 trillion difference is the fact that China is manipulating its currency to be worth much less than the dollar. This results in cheap Chinese products (products that we have no problem consuming here in the U.S.) which also allows a low cost of living when compared to the U.S.. Therefore, that along with China's productive factory sector, the economy of China is taking a steady incline and has finally surpassed the U.S. after years of being on the slow side, economically speaking. However, when comparing the two without any adjustments for the cost of living, the U.S. triumphs against China, having a GDP of $17.4 trillion opposed to the $10.4 trillion of China. According to investopedia.com, “purchasing power parity is the exchange rate between countries in order for the exchange to be equivalent to each currency's purchasing power; this is important when comparing economies because it puts these nations on an even base so that there are no unfair advantages/disadvantages.
It was true that in the last few decades Americans have the leading economy worldwide, followed up by China. It is no surprise that currently China's economy is leading by one key measure, gross domestic product. China's gross domestic product is worth $17.6 trillion, adjusted for China's relatively low cost of living, compared with $17.4 trillion for the U.S., the International Monetary Fund estimated as part of its latest World Economic Outlook. By merely $0.2 trillion, China surpassed as the world's leading share of global economy. A special factor as how China grew its economy at such a rapid pace is that they lowered their currency on purpose, compared to the U.S.'s dollar, Renminbi worths much less. Therefore, people would tend to buy items in China because it is so cheap rather than American goods. It is obvious that the more people buy supplies in China, its economy would grow. It's important to note that these figures are adjusted for the relative costs of living in both countries, known to fancy economists as "purchasing power parity." According to investopedia.com, purchasing power rarity is An economic theory that estimates the amount of adjustment needed on the exchange rate between countries in order for the exchange to be equivalent to each currency's purchasing power. PPP matters because comparing one country's economy to another wouldn't be possible without putting them on equal terms first, giving more accurate datas rather than blind estimations.
It has been reported that China’s become is the biggest in the world, surpassing the United States. The United States gross domestic growth is $17.4 trillion while China has a GDP of $17.6 trillion. The one key factor that led China becoming the biggest economy in the world is making their currency less than the dollar; this makes Chinese products less than the United States. More people are attracted to buy Chinese products rather than the US. According to Investopedia.com purchasing power parity is “an economic theory that estimates the amount of adjustment needed on the exchange rate between countries in order for the exchange to be equivalent to each currency's purchasing power”. Purchasing Power Parity matters because if one would compare two economies together without putting the two on equal terms then there would be no accurate measure of which economy is doing better. The (PPP) theory makes comparing economies as accurate as possible.
China's economy is now the biggest in the world, topping the United States. The one key measure that allowed China to be number one is the cost of living. Compared to the U.S. it is way cheaper to live in China. They are making their currency worth less a dollar. Because of this method China's products are not expensive . In this case many other countries trade with them because the prices over there are way cheaper then their own countries. Making the economy in China number 1. China's booming factory sector has also helped make China's economy get bigger . Purchasing Power Parity is a technique used to determine the relative value of different currencies. PPP matters because it makes it easier to understand and interpret the data of each country. It also helps us compare income levels in each country.
Topping the United States, China’s economy is now the biggest in the world. Adjusted to China’s relatively low cost of living, their gross domestic product is worth $17.6 trillion compared to the United States with $17.4 trillion. The one key measure that allowed China to catch up to the U.S. to be in the number one slot is that fact that China is manipulating its currency to be worth less than a dollar. This helps Chinese products be cheaper than in the U.S. on the global market. China’s booming factory sector helped make the economy continue to grow rapidly. Even when not adjusted for the costs of living, China still comes on top compared to the United States. Important to notice is the purchasing power parity, which is something that economists do to make comparisons between the two countries more fair. In this case, the purchasing power parity is towards the adjusted relative costs of living in the both of these countries. The purchasing power parity makes the comparison much easier and more accurate.
According to the article China has been reported the largest in the world taking out the united sates.In the article it elaborates by tell you China's gross domestic product is worth $17.6 trillion while in the U.S it's $17.4 trillion that's only a 0.2$ percent difference between the two but it matters as the article states China is manipulating their currency so the value is less than a dollar.This method is beneficial in the global economy because it make Chinese items cheaper which was a main factor as to why they made it to the top.As for purchasing power parity " It's a method economists use to try to make comparisons between countrieses.It is effective because it allows things to be more fair as stated in the article
Purchasing power parity, is something economists do to try to make comparisons between countries more fair. It's important because it shows relative costs of living in both countries. It allows us to comprehend accurate information on comparisons between two countries. The key measure that china took in becoming the number one economy in the world was lowering their value of currency to be less than U.S dollar.
One key measure that allowed China to become number one is its GDP (gross domestic product). China's GDP is $17.6 trillion, while the U.S.'s GDP is $17.4 trillion. Another way of looking at it is that China's share of the economy is 16.5 percent, .2 percent greater than that of the U.S. These figures are adjusted relative to the costs of living in both countries, known as purchasing power parity. This is used by economists to try to make comparisons between countries more fair. Chinese stuff are way cheaper than U.S. stuff on the global market. Therefore, "a trillion dollars are worth allot more in China than in the U.S." Purchasing power parity is important because without it, when comparing the U.S.'s GDP with China's GDP, the U.S's GDP would be $17.4 trillion, surpassing that of China by $7 trillion. This GDP would break down to nearly $55,000 per person per year in the U.S., and $8,000 per person per year in China. However, this $8,000 is said to go much farther, in terms of costs, in China than would $55,000 in the U.S. Purchasing power parity makes the comparison between two countries' GDP more fair.
China's economy has recently become the largest in the world. This new status is due mainly to China's strategy of manipulating the economy through their currency. They are doing so by manipulating their currency so that it is worth less than the US dollar. This gives a false sense of money usage, as people begin to buy more products in China under the assumption that it is cheaper than it would be in the United States. The more products and services are purchased in China, the more increase their economy will see. Also, the cost of living in China is much less than within the United States. This will also influence more people to retire in China and spend more of their US currency in China's economic system, allowing them to manipulate the currency further. Investopedia.com states, "purchasing power parity is the exchange rate between countries in order for exchange to be equivalent to each currency's purchasing power or in other words, the exchange rate adjusts so that an identical good in two different countries has the same price when expressed in the same currency." Purchasing power parity matters because it allows economies to be analyzed and compared in equal terms rather than the latter. This allows for no false information to be released and attempted to be compared in economic decisions.
China's economy is now the biggest in the world, even bigger than the United States economy. One key measure that allowed China to become number one is the manipulation of there currency to be worth much less than the dollar. By doing this, it makes China's goods much cheaper on the global market. Purchasing power parity is something economists do to try to make comparisons between countries more fair.
One key measure that has allowed China to be number one is that the U.S. dollar is worth a lot more in China than in the U.S. It is said in the article, that China has learned to manipulate it's dollar to allow it to be cheaper. And with this Chinese products have also been cheaper. Purchasing power parity is how economist make comparisons between countries more fair. It is the only way to accurately measure the growth and income between two countries without it being unfair.
according to the article, the one key measure that allowed China to be number one is the manipulation of their currency to make Chinese goods cheaper than U.S goods in the global market. purchasing power parity means the relative costs of living between countries. It matters because It's something economists do to try to make comparisons between countries more fair. It also means It's a lot cheaper to live in China and much more expensive to live in the U.S..
What is the one key measure that allowed China to be number one? What is purchasing power parity and why does it matter?
The key measure that allowed China to be number one is the worth of their dollar. China’s gross domestic product is $17.6 trillion and the United States gross domestic worth is $17.4 trillion, this makes a $0.2 trillion difference in their gross domestic worth. Purchasing power parity is how economist make comparisons between countries more fair. This accurately measures the growth and income between countries evenly.
One key measure that has allowed China to be number one is that the U.S. dollar is worth a lot more in China than in the U.S. According to the article, Chinese used a method to manipulate their currency to allow it to be cheaper than what it actually is. Purchasing Power Parity is the exchange rate between countries in order for the exchange to be equivalent to each currency's purchasing power or in other words, the exchange rate adjusts so that an identical good in two different countries has the same price when expressed in the same currency. This matters because you wouldn't be able to compare two economies and end up with accurate measures. The PPP makes things a whole lot easier with compared accurate results.
China is the largest country in the entire world. Their economy has recently became the largest in the world.The key measure that allowed China to surpass The United States was the manipulation of their currency. Not only is China manipulating its currency, but they also have become the number one trading center in the world. purchasing power parity is an economic theory that estimates the amount of adjustment needed on the exchange rate between countries in order for the exchange to be equivalent to each currency's purchasing power. This is important because it makes comparing and contrasting countries's economies much more easier and accurate.
China’s economy has recently become the largest in the world. The GDP in China I at a staggering $17.6 trillion while the United States is at $17.4 trillion. One thing that China has been trying to do is manipulate their currency so that it becomes worth less than one dollar. They are trying to make their money worth less than the United States. The more people that begin to buy things in China, the more the Chinese economy will grow. Purchasing power parity matters because the comparison of incomes shows were it is better to live. China would be a better place to live. American living costs a lot. America just has power and China doesn’t. GDP breaks down to nearly $55,000 per capita per year in the U.S., as compared with less than $8,000 per person in China. China is trying to practically taking over. One key measure that allowed China to be number one is the fact that they have been trying to manipulate their currency to make it worth less than a dollar. In doing this, it makes items in China much cheaper than if people were to buy things in the United States. The more people that begin to buy things in China, the more the Chinese economy will grow. CARLIE LIBRIZZI
China having a population of more than 1.3 million makes it the largest country in the world. China also has the biggest economy in the world. China's gross domestic product is greater than America's at 17.6 trillion dollars. The purchasing power parity contributes to this number. The purchasing power parity is defined as the component of some economic theories. It is also a technique used to determine the relative value of different currencies. Purchasing power parity matters because the comparison of incomes shows were it is better to live.
China's economy is now the biggest in the world. They are able to be number on because of the manipulation of the currency. The goods in China are cheaper than that of the U.S. in the global market. China's currency is worth less than the U.S. dollar. Adjusted to China’s relatively low cost of living, their gross domestic product is worth $17.6 trillion compared to the United States with $17.4 trillion. It is crazy cheap to live in China and crazy expensive to live in the U.S., so a trillion U.S. dollars are worth a lot more in China than in the U.S. When putting these numbers into figures purchasing power parity is important. Purchasing Power Parity (PPP) is a component of some economic theories and is a technique used to determine the relative value of different currencies. It is basically the exchange rate between two countries in order for the exchange to be equivalent to each currency's purchasing power. This is important because without it you wouldn't be able to compare two economies and have accurate measures. This technique is the only way to accurately measure the growth and income between two countries without it being unfair.
One key measure that allows China to be number one would be that "China is manipulating its currency to be worth than the dollar. It does this to help make Chinese stuff cheaper than U.S. stuff on the global market. " China's GDP is worth $17.6 trillion. The US's GDP is worth $17.4 trillion. Its extremely cheap to live in China, unlike the US, making US's dollars worth way more in China than in the US. Purchasing Power Parity is something economists do to try to make comparisons between countries more fair. It matters because it makes it easier to compare two economies accurately.
The one key measure that caused China to become the number one economy in the world is their gross domestic product. It is at $17.6 trillion while the U.S. is at $17.4. The low cost of living in China has caused the Chinese money is not quite as valuable as the U.S. money system. In terms of us having more valuable money the we are still at $17.4 trillion while if China had our "dollar" their gross domestic product would only be at $10.4 trillion. Purchasing power parity is the act that economists do to make comparisons between countries simpler. It matters because some countries have money that has more value than other countries money.
China has just surpassed the U.S in having the "largest economy" in the world. Statistically, yes, they do have the largest economy in the world, but there are some factors that contribute to this. The Chinese currency is less than the U.S dollar making everything in China cheaper. With cheaper items, people have the power to buy more and contribute to the growth of its economy. The population in China greatly out numbers the population in the U.S. With more people in a country comes a larger economy. Purchasing Power Parity has to do with the currency of countries. It's a lot more expensive to live in the U.S compared to China due to the value of currency. Like Mark Gongloff said, a trillion dollars is worth way more to people in China than people in the U.S.
The one key measure that allowed China to be number one is the manipulation of the currency so it can be worth less than the US dollar. This can be infer that the products are much cheaper than those in the United States, so people can buy more items than usual. This of course will have people begin to make purchases more often in China than in the United States and that means that their economy is doing so well so it is much cheaper to live in China than to live in the United States. Also a trillion U.S. has more of a value in China than in the U.S. and that means one dollar in US would be worth so much in China. In the article,Purchasing Power Parity is something economists do to try to make comparisons between countries more fair. This matters because you wouldn’t have an accurate measure of the growth within two economies without it being unfair.
One key measure that China is doing is trying to manipulate their currency. They are trying to make their money worth less than the United States. China is doing all of this because it helps make their products cheaper than that of the United States on global market. So one dollar in US would be worth so much in China. Which makes more people buy things from China. From people buying more things and materials from China, it boosts China's economy up. Purchasing power parity (PPP) is an economic theory that estimates the amount of adjustment needed on the exchange rate between countries in order for the exchange to be equivalent to each currency's purchasing power. The reason It matters is because you wouldn't be able to compare one economy to a different one, also you wouldn't have a accurate measure. PPP makes comparing or analyzing another economy much easier.
One key measure that allowed China to become number one is that they have manipulated their currency and making goods significantly cheaper than U.S stuff on the global market. And in turn China's booming factories has helped make China's Economy flourish. Purchasing power purity is used when economists try to make comparisons between to countries more fair. It is needed to make accurate comparisons between two different countries in order to compare them correctly
In China everything is much cheaper then in the United States. Here we make everything much more expensive because we we want to make more profit. People of the United States of America are greedy and want as much money as they can get. This is not the only reason though it is an often looked over one. Raw materials are things used to make a product when assembled correctly. You need raw materials in every product ever made, so they play a key role in every economy. The difference between our raw materials and China's, is our materials cost much more. When something cost a lot of money to make you have to sell the item for a lot of money to either break even or make a profit. That's just how the market works. China is ahead of the United States because raw materials there cost a lot less and when materials cost less they are able to lower the price of goods. Consumers are worried about price before they buy anything. We as consumers want the best deal no matter where we go. If China is producing the same quality goods but for a lower price they will of course get more consumers and that's exactly what is happening.
One key measure that allowed China to become the number one economy is that China manipulates is currency to help make Chinese stuff Cheaper than U.S. stuff on the global market. A trade surplus doesn't increase the value of China's currency because the government constantly prints new currency and uses it to buy U.S. dollars and U.S. government debt, thereby flooding the market with Chinese currency and increasing demand for American dollars. Purchasing power parity is a technique used to determine the relative value of different currencies. It matters because It is extremely cheap to live in China but expensive to live in the U.S., so U.S. dollars are worth a lot more in China than in the U.S. because they can purchase more with it. China is manipulating its currency to be worth a lot less than the dollar
The key measure that China finally surpassed the U.S. on is GDP. Purchasing power parity is when the numbers are adjusted to support the cost of living in each country. This has a great effect on this news because the cost of living is significantly lower in China. Another factor that makes this statistic obsolete is the fact that China houses the largest population on the planet. China is home to over 1,367,040,000 people, and the population is still growing. They are able to manufacture more goods and sell them for a cheaper price due to their economic situation. So at the end of the day, the U.S. has nothing to worry about.
China was just named the number one economic power in the world. This is so in part of the fact that their cost of living is very low compared to the US. China's gross domestic product is 200 billion more than the US. Chins is also manipulating their currency to be worth less than the dollar. This trend is expected to continue through 2018. China's share of the global market is .2% larger than the US. Purchasing power parity is a theory that estimates the amount of adjustments needed on the exchange rate between countries in order for them to be equivalent. This is important because it helps to accurately compare two different economies.
The key factor that has led China's economy to surpass that of America's and become the number one economy in the world is the fact that they are manipulating their currency to take on less value than it is worth. This makes Chinese goods more appealing to the global market because people can get it cheap. Also, since China has a population of 1,367,040,000, there are a lot of people within the country who are able to buy and sell which also strengthens the Chinese economy. Not to mention, the article stated that the cost of living in China is crazy cheap compared to the cost of living in the US. According to investopedia, Purchasing Power Parity is an economic theory that estimates the amount of adjustment needed on the exchange rate between countries in order for the exchange to be equivalent to each currency's purchasing power. It is important because it helps economists evaluate two different economies more fairly and equally.
China has recently surpassed the US in gross domestic product, making $17.6 trillion con compared to US making $17.4 trillion dollars. This, however can be misleasding, as it is adjusted to China's ridiculously low cost of living, otherwise known as "purchasing power parity". That is the economists' way to try and make fair economic com[arisons. One of the main reasons the Chinese market and economy has increased so much is that china is changing its monetary value so it's worth much less than the US dollar. This and the junction of China's increasing factory sector has caused an economic boom for China. HOwever, in sheer size, the US economy is nearly $7 trillion dollars bigger than China's, and GDP is nearly $60 thousand per person in the US, compared to China's $10 thousand
One key measure that allowed China to be number one is that they are making the cost of living much cheaper over in China than in the U.S. The article states that China is manipulating its currency to be worth much less than the U.S. dollar which helps to make Chinese stuff cheaper than U.S. stuff on the global market. Purchasing power parity is a component of some economic theories and is a technique used to determine the relative value of different currencies. It is important because it is what makes comparing and analyzing another economy easy.
China's gross domestic product is worth $17.6 trillion, compared to the $17.4 trillion of the United States. The reason that China is number one is because the is way more cheaper to live in China. The one key that China is doing is trying to manipulate their currency to make it worth less than a dollar. Therefore making China's economy thrive and get bigger. It is crazy cheap to live in China and crazy expensive to live in the U.S., so a trillion U.S. dollars are worth a lot more in China than in the U.S. Not only is China manipulating its currency, but they also have become the number one trading center in the world. China is selling their stuff at super low prices, cheaper than U.S. stuff on the global market. And american politics are pretending to be super angry about this, but don't much mind getting all the cheap Chinese stuff. Not only that China's booming factory sector has also helped make China's economy rapidly get bigger and bigger. Purchasing power parity (PPP) is an economic theory that estimates the amount of adjustment needed on the exchange rate between countries in order for the exchange to be equivalent to each currency's purchasing power. Purchasing power parity is important because it puts all the world’s economies on even ground, so everyone is on the same page.
China has one fifth of the world's population. China now has the biggest economy globally. China's gross domestic product is more than America's at 17.6 trillion dollars. The purchasing power parity contributes to this number. The purchasing power parity is defined as the component of some economic theories. It is also used to determine the relative value of different currencies. Purchasing power parity matters because the comparison of incomes shows were it is better to live. China would be a better place to live. The American dream is very hard to achieve nowadays. The difference between China and America is freedom. In China there is a communism. America on the other hand gives people free will to live as they wish for the most part. China is a great place to live for a discount though. China knows how to manipulate their currency. China now has a great factor sector that is helping with their economic growth.
According to the Huffington post,China's gross domestic product is worth $17.6 trillion, adjusted for China's relatively low cost of living, compared with $17.4 trillion for the U.S. The manipulation of China's currency to worth a lot less than the u.s dollar is a key measure to them being number one. In effect, this allows their goods to be cheaper than in the United States. Many of U.S goods on the market are from china. Purchasing power parity is an idea used by economist to make comparisons between countries more fair. For example, the china's cost of living is very cheap versus the united states that is very high so the value of a trillion dollars differ between the two. This idea matters because it puts countries on an equivalent level for a more accurate reading.
China has recently slighlty passed America in currency by about 0.2 trillion dollars. Now China was able to do this because they adjusted their currency to be worth less than a dollar. Purchasing power parity or (PPP) is a component of some economic theories and is a technique used to determine the relative value of different currencies. If you look at it that way then America is still number one because they don't adjust their currency
China now, unsurprisingly, has the biggest economy in the world. China's GDP is now 16.5 percent, compared to the United States' 16.3 percent. The only reason why it is bigger, however, is due to the adjusted figures for the relative cost of living in both countries. This method of leveling the playing field is called "purchasing power parity." China's cost of living is significantly more modest than Americas'. With the costs of living untouched, America's economy still beats China's. Purchasing power parity is important because not every country uses the same currency so using this method makes data more accurate.
The one key measure that allowed China to be number one is the fact China is manipulating its currency to be worth much less than the dollar. This helps to make Chinese goods and services cheaper than U.S. goods and services. China's gross domestic product is worth $17.6 trillion, whereas it's $17.4 trillion in the U.S.. Purchasing power parity is an estimation of the amount of adjustment needed on exchange rates between countries in order for the exchange to be equivalent to each currency's purchasing power. This matters because it determines which currency is worth more. Since Chinese currency is worth much less than the U.S. dollar, the U.S. dollar can buy much more in China than it ever can in it's own country of derivation.
The United States and China are neck and neck with China's economy being number one by only $0.2 million. China is not only the largest country in the world but also has a much larger population than the United States. However, the key measure taken to hold that spot was the manipulation of their currency to decrease its its worth making it less than the U.S dollar. This results in China's product's costs becoming cheaper and ultimately the U.S buying all their goods from China which explains the $0.2 million. Investopedia.com defines purchasing power parity as " the exchange rate between countries in order for the exchange to be equivalent purchasing power". This is important because it sets a normal for economies so you can determine a better and worse which makes the comparison more fair.
China’s economy has recently topped America's economy and became the largest in the world. The Gross Domestic Product in China is at $17.6 trillion while the United States is at $17.4 trillion, which is only a .3 trillion difference, but enough to put China on top. A strategy China has been trying to use is manipulating their currency so that it becomes worth less than one dollar. Thus, products in China are more cheaper than products in the U.S. This will in turn boost the economy, because people in China have more purchasing power than Americans in the Unites States. According to investopedia.com, “purchasing power parity is the exchange rate between countries in order for the exchange to be equivalent to each currency's purchasing power or in other words, the exchange rate adjusts so that an identical good in two different countries has the same price when expressed in the same currency.” Purchasing power parity is important because in order to compare the value of each country's output in the economy, all the statistical data must be converted into a common currency.
China has recently surpassed America in being the "largest economy" One key measure that allowed this to happen is the fact that China is manipulating their currency and significantly making their money worth less than U.S currency. Their currency is now worth less than a dollar in the U.S. When good are cheaper, it will in turn boost the economy because more people will buy more things. More over, America gets several of its goods from China which further explains how their economy has become the largest in the world. As defined in investopedia.com, purchasing power parity is " the exchange rate between countries in order for the exchange to be equivalent purchasing power". It's important because it sets a type of standard for economies in order for them to determine a good or bad state they may be in and helps to make the two somewhat equal or "fair.
The one key measure that allowed China to surpass the Unites States, was the fact that China is manipulating its currency to be worth much less than the dollar. This helps make Chinese products cheaper than U.S. products on the global market. On top of that, China's booming factory sector has helped make China's economy rapidly get bigger and bigger. "Purchasing power parity." It's something economists do to try to make comparisons between countries more fair. The definition is that its an economic theory that estimates the amount of adjustment needed on the exchange between countries in order for the exchange to be equivalent to each currency;s purchasing power. So basically, the exchange rate adjusts so that an identical good in two different countries has the same price when expressed in the same country.
China's gross domestic product is worth $17.6 trillion, compared to the $17.4 trillion of the United States. The reason that China is number one is because the is way more cheaper to live in China.One key measure that allowed this to happen is the fact that China is manipulating their currency and significantly making their money worth less than U.S currency.A trade surplus doesn't increase the value of China's currency because the government constantly prints new currency and uses it to buy U.S. dollars and U.S. government debt, thereby flooding the market with Chinese currency and increasing demand for American dollars.It matters because It's something economists do to try to make comparisons between countries more fair.
The key measure that allowed China to be number one was the manipulation of their currency. China's gross domestic product is worth 17.6 trillion. Another reason why China took the lead was the fact that China's global economy is now a bit bigger than the United states l purchasing power parity is an economic theory that estimates the amount of adjustment needed on the exchange rate between countries in order for the exchange to be equivalent to order currencys. It matters because we have to make everything equal.
One key measure that allowed China to be number one is that they are making the cost of living much cheaper over in China than in the U.S. China has a gross domestic product worth $17.6 trillion and the United States having a gross domestic product worth $17.4 trillion. a trillion U.S. dollars are worth a lot more in China than in the U.S. Purchasing Power Parity is the exchange rate between countries in order for the exchange to be equivalent to each currency's purchasing power or in other words, the exchange rate adjusts so that an identical good in two different countries has the same price when expressed in the same currency. This matters because you wouldn't be able to compare two economies and end up with accurate measures. The PPP makes things a whole lot easier with compared accurate results.
Gross Domestic Product is the one key measure that allowed China to be number one economy, while we have a 17.4 trillion dollar GDP China has a 17.6 trillion dollar one; surpassing us by a measly 0.2% The Purchasing Power Parity is the adjustment of figures for the relative cost of living in both countries. The Purchasing Power Parity is important because in order to compare the value of each country's output in the economy, all the statistical data must be converted into a common currency.
The one key measure that allowed China to be in the top of the world's economy was the fact that they have most of the resources to create goods and services for their own people. Not like other countries that rely on import and exports to supply their demand of living. This makes the creation of products cheaper for the industries, thus cheaper for the costumer.
The purchasing power parity is a component of some economic theories and is a technique used to determine the relative value of different currencies. It is important for the Chinese to measure the growth of other monetary systems such as the US dollar. This system helps them to manipulate the Chinese dollars and makes it less than the US dollars. Buyers will not want to get products from the US, when they can get cheaper products from China (making a bigger profit for China).
As a personal opinion, I believe that an other key for China's successful economy is the one child law. Making life more affordable for the Chinese people, and creating an economy that keeps on growing. For example, instead of having to feed five extra mouths you would only have to feed one.
The one key measure that allowed China to be number is by keeping the worth of their currency much less than the US dollar. China does this to help make the products are shipped to America cheaper compared to the global market. The low labor costs and the high demands of goods fuel China's economy by forcing industries to produce faster and more effecient ways to the global market. The extremely cheap products attract companies to keep buying from chinese manufacturers The continuous cash flow to china for these cheap products resulted in China's economy to surpass the US's. According to www.investipedia.com, purchasing power parity is "An economic theory that estimates the amount of adjustment needed on the exchange rate between countries in order for the exchange to be equivalent to each currency's purchasing power." Purchasing power parity is important because this gives the ratio of the dollar to be equivalent to a certain value for other currencies so that America is able to have a market with other countries.
The one key measure that allowed China to be number one is their manipulation of their currency to be worth much less than the US dollar. While Chinese currency is very cheap, their products are also very cheap, and helps them on the global market; that's why most products are labeled "made in China". The cost of living in China is also very low. In the US we live luxuriously compared to other countries. The cost of living in the US is about $55,000 while the cost of living in China is about $8,000. This means more money to the government. Purchasing power parity is a component of some economic theories and is a technique used to determine the relative value of different currencies. It matters because it allows China to manipulate their currency to be a lower value. If China keeps their currency value low, it would bring in more economic flow than the US would.
The one key measure that allowed China to be number one is it's extremely low cost of living compared to the United States. The chart that displays the current prices of the gross domestic product per capita per country breaks down to nearly $55,000 per capita per year in the U.S., compared with less than $8,000 per person in China. Purchasing power parity, or PPP, is a technique used to determine the relative value of different currencies. It's important on this topic because China is manipulating its currency to make the dollar over there worth a lot less in the United States. The article puts it simply by saying "It is crazy cheap to live in China and crazy expensive to live in the U.S., so a trillion U.S. dollars are worth a lot more in China than in the U.S.". This makes goods and services in China a lot less expensive, therefore more consumers go to China for their goods, in turn making the Chinese economy currently the strongest in the world.
China's gross domestic product is worth $17.6 trillion. Their GDP was adjusted for China's relatively low cost of living as compared with $17.4 trillion for the U.S. China's share of the global economy is now slightly bigger than America's, at 16.5% to 16.3%. China is manipulating its currency to be worth much less than the dollar. They're using this tactic to help make Chinese goods cheaper than U.S. goods on the global market. GDP breaks down to nearly $55,000 per capita per year in the U.S., as compared with less than $8,000 per person in China. Figures are adjusted for the relative costs of living in both countries, which is known as purchasing power parity. It's something economists do to try to make comparisons between countries more fair. PPP is important because of the idea that identical items in different countries should have the same "real" prices. The reason for this is that a consumer should be able to sell an item in one country, exchange the money received for the item for currency of a different country, and then buy the same item back in the other country and not have any money left over to be fair.
We have many things we need to solve in this country and racial prejudice is one of them. I'm am not the type of guy to stand up and critique people on the mistakes they made unless there is no effort to correct them. It is everyone's fault the problems we are having not just whites and not just blacks either we collectively as a people have to solve this problem and it starts with little things like the housing problems. If you expect for our "great" nation to be great we have to show it and not just write checks we can't cash. We need to be vigilant in whom is running our housing association to insure that no racial profiling will affect where we may reside. In this nation we pride ourself on the democeacy we have created and the ability to govern our own lives. We need not to recreate problems of our past but yet create sucess, leadership and social standard for years to come. We upset and deeply hurt a race when we segregate. We are not 5, 10, or 15 different nations made up of diffeent races but yet we are one nation whom is proud, strong, and unified. Leadership in ferguson need to take a self observation on what changes to make because all they are doing is upsetting people and that is creating a widespread range of violence which could not only effect ferguson but effect the whole world we live in and this calls for national attention.
It was reported that China’s economy recently became the largest in the world. China’s gross domestic product is at $17.6 trillion and the United States gross domestic worth is at $17.4 trillion, making it only a $0.2 trillion difference. One key measure that allowed China to be number one is the fact that they have been trying to manipulate their currency to make it worth less than a dollar. In doing this, it makes items in China much cheaper than if people were to buy things in the United States. The more people that begin to buy things in China, the more the Chinese economy will grow. People are going to begin to make purchases more often in China than in the U.S. Another reason why their economy is doing so well is that it is much cheaper to live in China than to live in the United States. According to investopedia.com, “purchasing power parity is the exchange rate between countries in order for the exchange to be equivalent to each currency's purchasing power or in other words, the exchange rate adjusts so that an identical good in two different countries has the same price when expressed in the same currency.” Purchasing power parity matters because if economies were compared without putting them in equal terms, you wouldn’t have an accurate measure of which ones were doing better. Purchasing power parity makes comparisons as accurate as possible.
ReplyDeleteThe key measure that allowed China to surpass The United States was the manipulation of their currency. A Chinese Yuan has the value of $0.16315 in the United States. China has completely lowered the price of living within the country. This is why it is cheaper to buy goods from China then within the United States. Investopedia defines purchasing power parity (PPP) as "an economic theory that estimates the amount of adjustment needed on the exchange rate between countries in order for the exchange to be equivalent to each currency's purchasing power". This matters because you can't compare one economy to another if their monetary values are unequal. PPP makes evaluating another economy as closely equivalent as possible.
ReplyDeleteChina's population is 1,367,040,000 and the United States population is 318,912,000. So China is defiantly over populated with people. China is the largest country in the entire world. Their economy has recently became the largest in the world. The one key that China was doing was trying to manipulate their currency. They are trying to make their money worth less than the United States. China is doing all of this because it helps make their stuff cheaper than the United States stuff on global market. According to the article, it said that "It is crazy cheap to live in China and crazy expensive to live in the U.S., so a trillion U.S. dollars are worth a lot more in China than in the U.S." So one dollar in US would be worth so much in China. Which makes more people buy things they need from China. From people buying more things and materials from China, it boosts China's economy up. The article states that the United States economy still dwarfs China's, at $17.4 trillion to $10.4 trillion. According to http://www.investopedia.com/terms/p/ppp.asp purchasing power parity (PPP) is an economic theory that estimates the amount of adjustment needed on the exchange rate between countries in order for the exchange to be equivalent to each currency's purchasing power. It matters because you wouldn't be able to compare one economy to a different one, also you wouldn't have a accurate measure. PPP makes comparing or analyzing another economy much easier.
ReplyDeleteThe one key measure allowing to china to be number one is the manipulation of their currency. According to the article "It is crazy cheap to live in China and crazy expensive to live in the U.S., so a trillion U.S. dollars are worth a lot more in China than in the U.S." So China has a much cheaper standard of living and also many more people, at over billion. Now that China is cheaper many countries flock there to buy product. Purchasing power parity is an economic theory that estimates the amount of adjustment needed on the exchange rate between countries in order for the exchange to be equivalent to each currency's purchasing power. It matters because we use it to compare different currencies so that when we analyze them we can have better facts. And it gives us an accurate rate. SAM MOHAMMED
ReplyDeleteChina's gross domestic product is worth $17.6 trillion. Their GDP was adjusted for China's relatively low cost of living as compared with $17.4 trillion for the U.S. China's share of the global economy is now slightly bigger than America's, at 16.5% to 16.3%. China is manipulating its currency to be worth much less than the dollar. They're using this tactic to help make Chinese goods cheaper than U.S. goods on the global market. GDP breaks down to nearly $55,000 per capita per year in the U.S., as compared with less than $8,000 per person in China. Figures are adjusted for the relative costs of living in both countries, which is known as purchasing power parity. It's something economists do to try to make comparisons between countries more fair. PPP is important because of the idea that identical items in different countries should have the same "real" prices. The reason for this is that a consumer should be able to sell an item in one country, exchange the money received for the item for currency of a different country, and then buy the same item back in the other country and not have any money left over to be fair.
ReplyDeleteIt has been stated in the article that it only took one important measure in order for China to be the biggest economy in the world, topping the United States of America. China has a gross domestic product worth $17.6 trillion and the United States having a gross domestic product worth $17.4 trillion. The difference between each places were close although China took the lead. Another factor that leads to this conclusion is the fact that China's global economy is now a bit bigger than that of America's. China has 16.5% whereas America is at 16.3%. Although there are other leading factors into the result of China becoming number one biggest economy, the main key measure for this was China is manipulating its currency to be worth much less than one dollar. They are doing this in order to help make Chinese stuff cheaper than that of in the United States on the global market. Many people are going to start making their purchases from China due to the cost being such a reasonable price whereas other places are more expensive. Especially as people are struggling with the economy, as of now China is producing things at a cheap cost which will increase the people making purchases from them and decrease purchases made other places. I believe that eventually many people will start moving to China due to the low costs. The United States economy still dwarfs China's, at $17.4 trillion to $10.4 trillion. According to investopedia.com, it is an economic theory that estimates the amount of adjustment needed on the exchange rate between countries in order for the exchange to be equivalent to each currency's purchasing power. This can be equated using the formula, S=pv1/pv2. Where: "S" represents exchange rate of currency 1 to currency 2 "P1" represents the cost of good "x" in currency 1. "P2" represents the cost of good "x" in currency 2. This matters because it makes it easier to compare and analyze economies.
ReplyDeleteChina has a population of more than 1.3 million. This is one fifth of the world's population. China now has the biggest economy globally. China's gross domestic product is greater than America's at 17.6 trillion dollars. The purchasing power parity contributes to this number. The purchasing power parity is defined as the component of some economic theories. It is also a technique used to determine the relative value of different currencies. Purchasing power parity matters because the comparison of incomes shows were it is better to live. China would be a better place to live. American living costs a lot. The American dream is very hard to achieve nowadays. The difference between China and America is freedom. In China there is a communism. America on the other hand gives people free will to live as they wish for the most part. China is a great place to live for a daily “discount" though. China knows how to manipulate their currency. China now has a great factor sector that is helping with their economic growth.
ReplyDeletePeople want more for less. In order for a gas station to make more money is that it sets its gas prices lower than the neighbouring gas stations, so that way people go to cheap instead of more. That's what China did. They tried to make thier currency worth less than the US currency which gave them a plus 1. That was thier key success. China's gross domestic product worth is $17.6 trillion dollars while America's gross domestic product worth is $17.4 trillion. China's global economy is also on the lead.
ReplyDeleteChina's population is blooming incredibly, and the United States population is one third of the size. The economy in China has recently became the largest in the world the one key that China was doing was trying to manipulate their currency. They are trying to make their money worth less than the United States. The more people that begin to buy things in China, the more the Chinese economy will grow. People are going to bring to make purchase more often than in the U.S. Another reason why their economy is doing so well is that it is much cheaper to live in China than to live in the United States. According to investopedia.com, "purchasing power parity is the exchange rate between countries in order for exchange to be equivalent to each currency's purchasing power or in other words, the exchange rate adjusts so that an identical good in two different countries has the same price when expressed in the same currency."
ReplyDeleteApparently, China’s economy has recently become the largest in the world. The GDP in China I at a staggering $17.6 trillion while the United States is at $17.4 trillion. One thing that China has been trying to do is manipulate their currency so that it becomes worth less than one dollar. By doing, it creates the illusion that products are much cheaper than those in the United States, so people are more inclined to buy things. This will in turn boost the economy, because people are purchasing more things than they are in the Unites States. Another reason why they are doing so well is that the cost of living in China is much cheaper than living in the United States. According to investopedia.com, “purchasing power parity is the exchange rate between countries in order for the exchange to be equivalent to each currency's purchasing power or in other words, the exchange rate adjusts so that an identical good in two different countries has the same price when expressed in the same currency.” Purchasing power parity is important because if world economies weren’t compared in equal terms, the data would not be accurate, leading to false information. But, with purchase power parity, it makes the data as accurate as possible.
ReplyDeleteChina’s economy has recently become the largest in the world. China’s GDP has soared to $17.4 trillion while the United States’ is $0.2 trillion lower at $17.4 trillion. Key factors that have allowed China to be number one in the world include China changing their currency to make it worth less than the dollar and because of this people from the United States buy goods in China therefore increasing their economy. China’s economy is also larger because it’s extremely cheap to live in china, so imagrants travel to China to start new lives instead of anywhere else because the cost of living is extremely low. According to investopedia.com purchasing power parity is the exchange rate between countries in order for the exchange to be equivalent to each currency's purchasing power or in other words, the exchange rate adjusts so that an identical good in two different countries has the same price when expressed in the same currency. Purchasing power parity is very important in the economic world because it puts economies on level playing fields and without it there would be an inaccurate measure of economies.
ReplyDeleteThe one key measure that allowed China to be number one is gross domestic product its at 17.6 trillion dollars and United States is at 17.4 trillion dollars. Purchasing power parity is also a big deal; It is crazy cheap to live in China and crazy expensive to live in the United States so a trillion U.S. dollars are worth a lot more in China than in the United States. The United States economy still dwarfs China's, at $17.4 trillion to $10.4 trillion. This is why everyone buys from China because its way cheaper than buying straight from the United states this is because China is manipulating its currency. Plus China's booming factory sector has, in turn, helped make China's economy rapidly get bigger and bigger.
ReplyDeleteThe one and only key measure that has allowed China's economy to be number one in the world is in growth domestic products. China's growth domestic product is at $17.6 trillion while United States is at $17.4 trillion. China's goal is to manipulate its currency to be worth much less than a dollar. Applying this method will help make Chinese items cheaper than U.S items on the market. So what will happen now is that consumers will start purchasing from the Chinese market rather than the American one. This method has made China's economy grow increasingly fast. According to investopedia.com, power parity is an economic theory that estimates the amount of adjustment needed on the exchange rate between countries in order for the exchange to be equivalent to each currency's purchasing power. This is essential for China's economic system, just one example is the cost of living which in China is so much cheaper than in the U.S. Economists have their own symbols and with that formulate an equation. "S" representing exchange rate of currency 1 to currency 2 ,"P1" representing the cost of good "x" in currency 1 and "P2" represents the cost of good "x" in currency 2. With this they formulate the following equation S= P1/P2, allowing for precise comparisons.
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ReplyDeleteChina’s economy recently became the largest in the world. China’s gross domestic product is at $17.6 trillion and the United States gross domestic worth is at $17.4 trillion.Their economy has recently became the largest in the world. One key measure that allowed China to be number one is the fact that they have been trying to manipulate their currency to make it worth less than a dollar; making it worth less than the united states.In doing this, it makes items in China much cheaper than if people were to buy things in the United States. According to the article, The more people that begin to buy things in China, the more the Chinese economy will grow.Another reason why their economy is doing so well is that it is much cheaper to live in China than to live in the United States. The article states that the United States economy still dwarfs China's, at $17.4 trillion to $10.4 trillion.According to investopedia.com, “purchasing power parity is the exchange rate between countries in order for the exchange to be equivalent to each currency's purchasing power.Purchasing power parity matters because if economies were compared without putting them in equal terms, you wouldn’t have an accurate measure of which ones were doing better. PPP makes comparisons as accurate as possible. it also makes comparing or analyzing another economy much easier.
ReplyDeleteIt comes as no surprise that China’s economy has trumped the United States, now being the largest economy in the world. In recent reports it was found that China’s gross domestic product (GDP) is $17.6 trillion, beating out the US, $17.4 GDP, by a mere 20,000 thousand dollars. The overall cost of living in China is a lot cheaper than someone trying to make a living in America. To make the comparison between countries more fair, economists use the term purchasing power parity; which means to adjust the figures for the relative cost of living in both countries. Purchasing power parity is important because it puts every country on the same level when being compared to another. The one key action that allowed China to become number one was the fact that they manipulate their currency to make it worth less than a dollar. It may not affect America directly, but on the global market the Chinese goods and services are much cheaper than American goods. It seems as though Americans should be mad about this but in reality they are benefiting from this also since they purchase Chinese goods. But allowing China to manipulate the value of a dollar to a cheaper monetary value, their economy is just going to keep getting bigger and bigger. On average, a US worker makes about $55,000, while the average Chinese worker makes $8,000 annually. But then again that $8,000 is worth more so it goes a long way.
ReplyDeleteThere is no surprise to hear that China’s economy recently became the largest in the world, beating out the U.S. China’s growth domestic product is at $17.6 trillion, and the U.S.’s is slightly lower, only at $17.4 trillion. Still, there is a small difference between the U.S. and China, which is helping China in the long run. One key measure that allows China to be number one is that they are manipulating their currency so that it becomes less than one dollar. From this, it gives off the impression that the things they are buying are cheaper, leading them to purchase more. In time, this will boost the economy from people buying more goods. An additional reason as to why China’s economy is doing better than the U.S. is because it’s cheaper to live in China versus the U.S. Purchasing power parity is the exchange rate between countries in order for the exchange to be equivalent to each currency’s purchasing power. (via investopedia.com) Purchasing power parity matters because it puts all the world’s economies on even ground, giving the ability to see accurate data.
ReplyDeleteChina's economy is now the largest in the world, their gross domestic product is currently worth $17.6 trillion while the U.S. has a GDP of $17.4 trillion, the primary factor of this $0.2 trillion difference is the fact that China is manipulating its currency to be worth much less than the dollar. This results in cheap Chinese products (products that we have no problem consuming here in the U.S.) which also allows a low cost of living when compared to the U.S.. Therefore, that along with China's productive factory sector, the economy of China is taking a steady incline and has finally surpassed the U.S. after years of being on the slow side, economically speaking. However, when comparing the two without any adjustments for the cost of living, the U.S. triumphs against China, having a GDP of $17.4 trillion opposed to the $10.4 trillion of China. According to investopedia.com, “purchasing power parity is the exchange rate between countries in order for the exchange to be equivalent to each currency's purchasing power; this is important when comparing economies because it puts these nations on an even base so that there are no unfair advantages/disadvantages.
ReplyDeleteIt was true that in the last few decades Americans have the leading economy worldwide, followed up by China. It is no surprise that currently China's economy is leading by one key measure, gross domestic product. China's gross domestic product is worth $17.6 trillion, adjusted for China's relatively low cost of living, compared with $17.4 trillion for the U.S., the International Monetary Fund estimated as part of its latest World Economic Outlook. By merely $0.2 trillion, China surpassed as the world's leading share of global economy. A special factor as how China grew its economy at such a rapid pace is that they lowered their currency on purpose, compared to the U.S.'s dollar, Renminbi worths much less. Therefore, people would tend to buy items in China because it is so cheap rather than American goods. It is obvious that the more people buy supplies in China, its economy would grow. It's important to note that these figures are adjusted for the relative costs of living in both countries, known to fancy economists as "purchasing power parity." According to investopedia.com, purchasing power rarity is An economic theory that estimates the amount of adjustment needed on the exchange rate between countries in order for the exchange to be equivalent to each currency's purchasing power. PPP matters because comparing one country's economy to another wouldn't be possible without putting them on equal terms first, giving more accurate datas rather than blind estimations.
ReplyDeleteIt has been reported that China’s become is the biggest in the world, surpassing the United States. The United States gross domestic growth is $17.4 trillion while China has a GDP of $17.6 trillion. The one key factor that led China becoming the biggest economy in the world is making their currency less than the dollar; this makes Chinese products less than the United States. More people are attracted to buy Chinese products rather than the US. According to Investopedia.com purchasing power parity is “an economic theory that estimates the amount of adjustment needed on the exchange rate between countries in order for the exchange to be equivalent to each currency's purchasing power”. Purchasing Power Parity matters because if one would compare two economies together without putting the two on equal terms then there would be no accurate measure of which economy is doing better. The (PPP) theory makes comparing economies as accurate as possible.
ReplyDeleteChina's economy is now the biggest in the world, topping the United States. The one key measure that allowed China to be number one is the cost of living. Compared to the U.S. it is way cheaper to live in China. They are making their currency worth less a dollar. Because of this method China's products are not expensive . In this case many other countries trade with them because the prices over there are way cheaper then their own countries. Making the economy in China number 1. China's booming factory sector has also helped make China's economy get bigger . Purchasing Power Parity is a technique used to determine the relative value of different currencies. PPP matters because it makes it easier to understand and interpret the data of each country. It also helps us compare income levels in each country.
ReplyDeleteTopping the United States, China’s economy is now the biggest in the world. Adjusted to China’s relatively low cost of living, their gross domestic product is worth $17.6 trillion compared to the United States with $17.4 trillion. The one key measure that allowed China to catch up to the U.S. to be in the number one slot is that fact that China is manipulating its currency to be worth less than a dollar. This helps Chinese products be cheaper than in the U.S. on the global market. China’s booming factory sector helped make the economy continue to grow rapidly. Even when not adjusted for the costs of living, China still comes on top compared to the United States. Important to notice is the purchasing power parity, which is something that economists do to make comparisons between the two countries more fair. In this case, the purchasing power parity is towards the adjusted relative costs of living in the both of these countries. The purchasing power parity makes the comparison much easier and more accurate.
ReplyDeleteAccording to the article China has been reported the largest in the world taking out the united sates.In the article it elaborates by tell you China's gross domestic product is worth $17.6 trillion while in the U.S it's $17.4 trillion that's only a 0.2$ percent difference between the two but it matters as the article states China is manipulating their currency so the value is less than a dollar.This method is beneficial in the global economy because it make Chinese items cheaper which was a main factor as to why they made it to the top.As for purchasing power parity " It's a method economists use to try to make comparisons between countrieses.It is effective because it allows things to be more fair as stated in the article
ReplyDeletePurchasing power parity, is something economists do to try to make comparisons between countries more fair. It's important because it shows relative costs of living in both countries. It allows us to comprehend accurate information on comparisons between two countries. The key measure that china took in becoming the number one economy in the world was lowering their value of currency to be less than U.S dollar.
ReplyDeleteOne key measure that allowed China to become number one is its GDP (gross domestic product). China's GDP is $17.6 trillion, while the U.S.'s GDP is $17.4 trillion. Another way of looking at it is that China's share of the economy is 16.5 percent, .2 percent greater than that of the U.S. These figures are adjusted relative to the costs of living in both countries, known as purchasing power parity. This is used by economists to try to make comparisons between countries more fair. Chinese stuff are way cheaper than U.S. stuff on the global market. Therefore, "a trillion dollars are worth allot more in China than in the U.S." Purchasing power parity is important because without it, when comparing the U.S.'s GDP with China's GDP, the U.S's GDP would be $17.4 trillion, surpassing that of China by $7 trillion. This GDP would break down to nearly $55,000 per person per year in the U.S., and $8,000 per person per year in China. However, this $8,000 is said to go much farther, in terms of costs, in China than would $55,000 in the U.S. Purchasing power parity makes the comparison between two countries' GDP more fair.
ReplyDeleteChina's economy has recently become the largest in the world. This new status is due mainly to China's strategy of manipulating the economy through their currency. They are doing so by manipulating their currency so that it is worth less than the US dollar. This gives a false sense of money usage, as people begin to buy more products in China under the assumption that it is cheaper than it would be in the United States. The more products and services are purchased in China, the more increase their economy will see. Also, the cost of living in China is much less than within the United States. This will also influence more people to retire in China and spend more of their US currency in China's economic system, allowing them to manipulate the currency further. Investopedia.com states, "purchasing power parity is the exchange rate between countries in order for exchange to be equivalent to each currency's purchasing power or in other words, the exchange rate adjusts so that an identical good in two different countries has the same price when expressed in the same currency." Purchasing power parity matters because it allows economies to be analyzed and compared in equal terms rather than the latter. This allows for no false information to be released and attempted to be compared in economic decisions.
ReplyDeleteChina's economy is now the biggest in the world, even bigger than the United States economy. One key measure that allowed China to become number one is the manipulation of there currency to be worth much less than the dollar. By doing this, it makes China's goods much cheaper on the global market. Purchasing power parity is something economists do to try to make comparisons between countries more fair.
ReplyDeleteOne key measure that has allowed China to be number one is that the U.S. dollar is worth a lot more in China than in the U.S. It is said in the article, that China has learned to manipulate it's dollar to allow it to be cheaper. And with this Chinese products have also been cheaper. Purchasing power parity is how economist make comparisons between countries more fair. It is the only way to accurately measure the growth and income between two countries without it being unfair.
ReplyDeleteaccording to the article, the one key measure that allowed China to be number one is the manipulation of their currency to make Chinese goods cheaper than U.S goods in the global market. purchasing power parity means the relative costs of living between countries. It matters because It's something economists do to try to make comparisons between countries more fair. It also means It's a lot cheaper to live in China and much more expensive to live in the U.S..
ReplyDeleteAnley Friden
ReplyDeleteWhat is the one key measure that allowed China to be number one? What is purchasing power parity and why does it matter?
The key measure that allowed China to be number one is the worth of their dollar. China’s gross domestic product is $17.6 trillion and the United States gross domestic worth is $17.4 trillion, this makes a $0.2 trillion difference in their gross domestic worth. Purchasing power parity is how economist make comparisons between countries more fair. This accurately measures the growth and income between countries evenly.
One key measure that has allowed China to be number one is that the U.S. dollar is worth a lot more in China than in the U.S. According to the article, Chinese used a method to manipulate their currency to allow it to be cheaper than what it actually is. Purchasing Power Parity is the exchange rate between countries in order for the exchange to be equivalent to each currency's purchasing power or in other words, the exchange rate adjusts so that an identical good in two different countries has the same price when expressed in the same currency. This matters because you wouldn't be able to compare two economies and end up with accurate measures. The PPP makes things a whole lot easier with compared accurate results.
ReplyDeleteChina is the largest country in the entire world. Their economy has recently became the largest in the world.The key measure that allowed China to surpass The United States was the manipulation of their currency. Not only is China manipulating its currency, but they also have become the number one trading center in the world. purchasing power parity is an economic theory that estimates the amount of adjustment needed on the exchange rate between countries in order for the exchange to be equivalent to each currency's purchasing power. This is important because it makes comparing and contrasting countries's economies much more easier and accurate.
ReplyDeleteChina’s economy has recently become the largest in the world. The GDP in China I at a staggering $17.6 trillion while the United States is at $17.4 trillion. One thing that China has been trying to do is manipulate their currency so that it becomes worth less than one dollar. They are trying to make their money worth less than the United States. The more people that begin to buy things in China, the more the Chinese economy will grow. Purchasing power parity matters because the comparison of incomes shows were it is better to live. China would be a better place to live. American living costs a lot. America just has power and China doesn’t. GDP breaks down to nearly $55,000 per capita per year in the U.S., as compared with less than $8,000 per person in China. China is trying to practically taking over. One key measure that allowed China to be number one is the fact that they have been trying to manipulate their currency to make it worth less than a dollar. In doing this, it makes items in China much cheaper than if people were to buy things in the United States. The more people that begin to buy things in China, the more the Chinese economy will grow.
ReplyDeleteCARLIE LIBRIZZI
China having a population of more than 1.3 million makes it the largest country in the world. China also has the biggest economy in the world. China's gross domestic product is greater than America's at 17.6 trillion dollars. The purchasing power parity contributes to this number. The purchasing power parity is defined as the component of some economic theories. It is also a technique used to determine the relative value of different currencies. Purchasing power parity matters because the comparison of incomes shows were it is better to live.
ReplyDeleteChina's economy is now the biggest in the world. They are able to be number on because of the manipulation of the currency. The goods in China are cheaper than that of the U.S. in the global market. China's currency is worth less than the U.S. dollar. Adjusted to China’s relatively low cost of living, their gross domestic product is worth $17.6 trillion compared to the United States with $17.4 trillion. It is crazy cheap to live in China and crazy expensive to live in the U.S., so a trillion U.S. dollars are worth a lot more in China than in the U.S. When putting these numbers into figures purchasing power parity is important. Purchasing Power Parity (PPP) is a component of some economic theories and is a technique used to determine the relative value of different currencies. It is basically the exchange rate between two countries in order for the exchange to be equivalent to each currency's purchasing power. This is important because without it you wouldn't be able to compare two economies and have accurate measures. This technique is the only way to accurately measure the growth and income between two countries without it being unfair.
ReplyDeleteOne key measure that allows China to be number one would be that "China is manipulating its currency to be worth than the dollar. It does this to help make Chinese stuff cheaper than U.S. stuff on the global market. " China's GDP is worth $17.6 trillion. The US's GDP is worth $17.4 trillion. Its extremely cheap to live in China, unlike the US, making US's dollars worth way more in China than in the US. Purchasing Power Parity is something economists do to try to make comparisons between countries more fair. It matters because it makes it easier to compare two economies accurately.
ReplyDeleteThe one key measure that caused China to become the number one economy in the world is their gross domestic product. It is at $17.6 trillion while the U.S. is at $17.4. The low cost of living in China has caused the Chinese money is not quite as valuable as the U.S. money system. In terms of us having more valuable money the we are still at $17.4 trillion while if China had our "dollar" their gross domestic product would only be at $10.4 trillion. Purchasing power parity is the act that economists do to make comparisons between countries simpler. It matters because some countries have money that has more value than other countries money.
ReplyDeleteChina has just surpassed the U.S in having the "largest economy" in the world. Statistically, yes, they do have the largest economy in the world, but there are some factors that contribute to this. The Chinese currency is less than the U.S dollar making everything in China cheaper. With cheaper items, people have the power to buy more and contribute to the growth of its economy. The population in China greatly out numbers the population in the U.S. With more people in a country comes a larger economy. Purchasing Power Parity has to do with the currency of countries. It's a lot more expensive to live in the U.S compared to China due to the value of currency. Like Mark Gongloff said, a trillion dollars is worth way more to people in China than people in the U.S.
ReplyDeleteThe one key measure that allowed China to be number one is the manipulation of the currency so it can be worth less than the US dollar. This can be infer that the products are much cheaper than those in the United States, so people can buy more items than usual. This of course will have people begin to make purchases more often in China than in the United States and that means that their economy is doing so well so it is much cheaper to live in China than to live in the United States. Also a trillion U.S. has more of a value in China than in the U.S. and that means one dollar in US would be worth so much in China. In the article,Purchasing Power Parity is something economists do to try to make comparisons between countries more fair. This matters because you wouldn’t have an accurate measure of the growth within two economies without it being unfair.
ReplyDeleteOne key measure that China is doing is trying to manipulate their currency. They are trying to make their money worth less than the United States. China is doing all of this because it helps make their products cheaper than that of the United States on global market. So one dollar in US would be worth so much in China. Which makes more people buy things from China. From people buying more things and materials from China, it boosts China's economy up. Purchasing power parity (PPP) is an economic theory that estimates the amount of adjustment needed on the exchange rate between countries in order for the exchange to be equivalent to each currency's purchasing power. The reason It matters is because you wouldn't be able to compare one economy to a different one, also you wouldn't have a accurate measure. PPP makes comparing or analyzing another economy much easier.
ReplyDeleteOne key measure that allowed China to become number one is that they have manipulated their currency and making goods significantly cheaper than U.S stuff on the global market. And in turn China's booming factories has helped make China's Economy flourish. Purchasing power purity is used when economists try to make comparisons between to countries more fair. It is needed to make accurate comparisons between two different countries in order to compare them correctly
ReplyDeleteIn China everything is much cheaper then in the United States. Here we make everything much more expensive because we we want to make more profit. People of the United States of America are greedy and want as much money as they can get. This is not the only reason though it is an often looked over one. Raw materials are things used to make a product when assembled correctly. You need raw materials in every product ever made, so they play a key role in every economy. The difference between our raw materials and China's, is our materials cost much more. When something cost a lot of money to make you have to sell the item for a lot of money to either break even or make a profit. That's just how the market works. China is ahead of the United States because raw materials there cost a lot less and when materials cost less they are able to lower the price of goods. Consumers are worried about price before they buy anything. We as consumers want the best deal no matter where we go. If China is producing the same quality goods but for a lower price they will of course get more consumers and that's exactly what is happening.
ReplyDeleteOne key measure that allowed China to become the number one economy is that China manipulates is currency to help make Chinese stuff Cheaper than U.S. stuff on the global market. A trade surplus doesn't increase the value of China's currency because the government constantly prints new currency and uses it to buy U.S. dollars and U.S. government debt, thereby flooding the market with Chinese currency and increasing demand for American dollars. Purchasing power parity is a technique used to determine the relative value of different currencies. It matters because It is extremely cheap to live in China but expensive to live in the U.S., so U.S. dollars are worth a lot more in China than in the U.S. because they can purchase more with it. China is manipulating its currency to be worth a lot less than the dollar
ReplyDeleteThe key measure that China finally surpassed the U.S. on is GDP. Purchasing power parity is when the numbers are adjusted to support the cost of living in each country. This has a great effect on this news because the cost of living is significantly lower in China. Another factor that makes this statistic obsolete is the fact that China houses the largest population on the planet. China is home to over 1,367,040,000 people, and the population is still growing. They are able to manufacture more goods and sell them for a cheaper price due to their economic situation. So at the end of the day, the U.S. has nothing to worry about.
ReplyDeleteChina was just named the number one economic power in the world. This is so in part of the fact that their cost of living is very low compared to the US. China's gross domestic product is 200 billion more than the US. Chins is also manipulating their currency to be worth less than the dollar. This trend is expected to continue through 2018. China's share of the global market is .2% larger than the US. Purchasing power parity is a theory that estimates the amount of adjustments needed on the exchange rate between countries in order for them to be equivalent. This is important because it helps to accurately compare two different economies.
ReplyDeleteThe key factor that has led China's economy to surpass that of America's and become the number one economy in the world is the fact that they are manipulating their currency to take on less value than it is worth. This makes Chinese goods more appealing to the global market because people can get it cheap. Also, since China has a population of 1,367,040,000, there are a lot of people within the country who are able to buy and sell which also strengthens the Chinese economy. Not to mention, the article stated that the cost of living in China is crazy cheap compared to the cost of living in the US.
ReplyDeleteAccording to investopedia, Purchasing Power Parity is an economic theory that estimates the amount of adjustment needed on the exchange rate between countries in order for the exchange to be equivalent to each currency's purchasing power. It is important because it helps economists evaluate two different economies more fairly and equally.
China has recently surpassed the US in gross domestic product, making $17.6 trillion con compared to US making $17.4 trillion dollars. This, however can be misleasding, as it is adjusted to China's ridiculously low cost of living, otherwise known as "purchasing power parity". That is the economists' way to try and make fair economic com[arisons. One of the main reasons the Chinese market and economy has increased so much is that china is changing its monetary value so it's worth much less than the US dollar. This and the junction of China's increasing factory sector has caused an economic boom for China. HOwever, in sheer size, the US economy is nearly $7 trillion dollars bigger than China's, and GDP is nearly $60 thousand per person in the US, compared to China's $10 thousand
ReplyDeleteOne key measure that allowed China to be number one is that they are making the cost of living much cheaper over in China than in the U.S. The article states that China is manipulating its currency to be worth much less than the U.S. dollar which helps to make Chinese stuff cheaper than U.S. stuff on the global market. Purchasing power parity is a component of some economic theories and is a technique used to determine the relative value of different currencies. It is important because it is what makes comparing and analyzing another economy easy.
ReplyDeleteChina's gross domestic product is worth $17.6 trillion, compared to the $17.4 trillion of the United States. The reason that China is number one is because the is way more cheaper to live in China. The one key that China is doing is trying to manipulate their currency to make it worth less than a dollar. Therefore making China's economy thrive and get bigger. It is crazy cheap to live in China and crazy expensive to live in the U.S., so a trillion U.S. dollars are worth a lot more in China than in the U.S. Not only is China manipulating its currency, but they also have become the number one trading center in the world. China is selling their stuff at super low prices, cheaper than U.S. stuff on the global market. And american politics are pretending to be super angry about this, but don't much mind getting all the cheap Chinese stuff. Not only that China's booming factory sector has also helped make China's economy rapidly get bigger and bigger. Purchasing power parity (PPP) is an economic theory that estimates the amount of adjustment needed on the exchange rate between countries in order for the exchange to be equivalent to each currency's purchasing power. Purchasing power parity is important because it puts all the world’s economies on even ground, so everyone is on the same page.
ReplyDeleteChina has one fifth of the world's population. China now has the biggest economy globally. China's gross domestic product is more than America's at 17.6 trillion dollars. The purchasing power parity contributes to this number. The purchasing power parity is defined as the component of some economic theories. It is also used to determine the relative value of different currencies. Purchasing power parity matters because the comparison of incomes shows were it is better to live. China would be a better place to live. The American dream is very hard to achieve nowadays. The difference between China and America is freedom. In China there is a communism. America on the other hand gives people free will to live as they wish for the most part. China is a great place to live for a discount though. China knows how to manipulate their currency. China now has a great factor sector that is helping with their economic growth.
ReplyDeleteAccording to the Huffington post,China's gross domestic product is worth $17.6 trillion, adjusted for China's relatively low cost of living, compared with $17.4 trillion for the U.S. The manipulation of China's currency to worth a lot less than the u.s dollar is a key measure to them being number one. In effect, this allows their goods to be cheaper than in the United States. Many of U.S goods on the market are from china. Purchasing power parity is an idea used by economist to make comparisons between countries more fair. For example, the china's cost of living is very cheap versus the united states that is very high so the value of a trillion dollars differ between the two. This idea matters because it puts countries on an equivalent level for a more accurate reading.
ReplyDeleteChina has recently slighlty passed America in currency by about 0.2 trillion dollars. Now China was able to do this because they adjusted their currency to be worth less than a dollar. Purchasing power parity or (PPP) is a component of some economic theories and is a technique used to determine the relative value of different currencies. If you look at it that way then America is still number one because they don't adjust their currency
ReplyDelete-Raymond Tilus
China now, unsurprisingly, has the biggest economy in the world. China's GDP is now 16.5 percent, compared to the United States' 16.3 percent. The only reason why it is bigger, however, is due to the adjusted figures for the relative cost of living in both countries. This method of leveling the playing field is called "purchasing power parity." China's cost of living is significantly more modest than Americas'. With the costs of living untouched, America's economy still beats China's. Purchasing power parity is important because not every country uses the same currency so using this method makes data more accurate.
ReplyDeleteThe one key measure that allowed China to be number one is the fact China is manipulating its currency to be worth much less than the dollar. This helps to make Chinese goods and services cheaper than U.S. goods and services. China's gross domestic product is worth $17.6 trillion, whereas it's $17.4 trillion in the U.S..
ReplyDeletePurchasing power parity is an estimation of the amount of adjustment needed on exchange rates between countries in order for the exchange to be equivalent to each currency's purchasing power. This matters because it determines which currency is worth more. Since Chinese currency is worth much less than the U.S. dollar, the U.S. dollar can buy much more in China than it ever can in it's own country of derivation.
The United States and China are neck and neck with China's economy being number one by only $0.2 million. China is not only the largest country in the world but also has a much larger population than the United States. However, the key measure taken to hold that spot was the manipulation of their currency to decrease its its worth making it less than the U.S dollar. This results in China's product's costs becoming cheaper and ultimately the U.S buying all their goods from China which explains the $0.2 million. Investopedia.com defines purchasing power parity as " the exchange rate between countries in order for the exchange to be equivalent purchasing power". This is important because it sets a normal for economies so you can determine a better and worse which makes the comparison more fair.
ReplyDeleteChina’s economy has recently topped America's economy and became the largest in the world. The Gross Domestic Product in China is at $17.6 trillion while the United States is at $17.4 trillion, which is only a .3 trillion difference, but enough to put China on top. A strategy China has been trying to use is manipulating their currency so that it becomes worth less than one dollar. Thus, products in China are more cheaper than products in the U.S. This will in turn boost the economy, because people in China have more purchasing power than Americans in the Unites States. According to investopedia.com, “purchasing power parity is the exchange rate between countries in order for the exchange to be equivalent to each currency's purchasing power or in other words, the exchange rate adjusts so that an identical good in two different countries has the same price when expressed in the same currency.” Purchasing power parity is important because in order to compare the value of each country's output in the economy, all the statistical data must be converted into a common currency.
ReplyDeleteChina has recently surpassed America in being the "largest economy" One key measure that allowed this to happen is the fact that China is manipulating their currency and significantly making their money worth less than U.S currency. Their currency is now worth less than a dollar in the U.S. When good are cheaper, it will in turn boost the economy because more people will buy more things. More over, America gets several of its goods from China which further explains how their economy has become the largest in the world. As defined in investopedia.com, purchasing power parity is " the exchange rate between countries in order for the exchange to be equivalent purchasing power". It's important because it sets a type of standard for economies in order for them to determine a good or bad state they may be in and helps to make the two somewhat equal or "fair.
ReplyDeleteThe one key measure that allowed China to surpass the Unites States, was the fact
ReplyDeletethat China is manipulating its currency to be worth much less than the dollar. This helps make Chinese products cheaper than U.S. products on the global market. On top of that, China's booming factory sector has helped make China's economy rapidly get bigger and bigger. "Purchasing power parity." It's something economists do to try to make comparisons between countries more fair. The definition is that its an economic theory that estimates the amount of adjustment needed on the exchange between countries in order for the exchange to be equivalent to each currency;s purchasing power. So basically, the exchange rate adjusts so that an identical good in two different countries has the same price when expressed in the same country.
China's gross domestic product is worth $17.6 trillion, compared to the $17.4 trillion of the United States. The reason that China is number one is because the is way more cheaper to live in China.One key measure that allowed this to happen is the fact that China is manipulating their currency and significantly making their money worth less than U.S currency.A trade surplus doesn't increase the value of China's currency because the government constantly prints new currency and uses it to buy U.S. dollars and U.S. government debt, thereby flooding the market with Chinese currency and increasing demand for American dollars.It matters because It's something economists do to try to make comparisons between countries more fair.
ReplyDeleteThe key measure that allowed China to be number one was the manipulation of their currency. China's gross domestic product is worth 17.6 trillion. Another reason why China took the lead was the fact that China's global economy is now a bit bigger than the United states l purchasing power parity is an economic theory that estimates the amount of adjustment needed on the exchange rate between countries in order for the exchange to be equivalent to order currencys. It matters because we have to make everything equal.
ReplyDeleteOne key measure that allowed China to be number one is that they are making the cost of living much cheaper over in China than in the U.S. China has a gross domestic product worth $17.6 trillion and the United States having a gross domestic product worth $17.4 trillion. a trillion U.S. dollars are worth a lot more in China than in the U.S. Purchasing Power Parity is the exchange rate between countries in order for the exchange to be equivalent to each currency's purchasing power or in other words, the exchange rate adjusts so that an identical good in two different countries has the same price when expressed in the same currency. This matters because you wouldn't be able to compare two economies and end up with accurate measures. The PPP makes things a whole lot easier with compared accurate results.
ReplyDeleteGross Domestic Product is the one key measure that allowed China to be number one economy, while we have a 17.4 trillion dollar GDP China has a 17.6 trillion dollar one; surpassing us by a measly 0.2% The Purchasing Power Parity is the adjustment of figures for the relative cost of living in both countries. The Purchasing Power Parity is important because in order to compare the value of each country's output in the economy, all the statistical data must be converted into a common currency.
ReplyDeleteThe one key measure that allowed China to be in the top of the world's economy was the fact that they have most of the resources to create goods and services for their own people. Not like other countries that rely on import and exports to supply their demand of living. This makes the creation of products cheaper for the industries, thus cheaper for the costumer.
ReplyDeleteThe purchasing power parity is a component of some economic theories and is a technique used to determine the relative value of different currencies. It is important for the Chinese to measure the growth of other monetary systems such as the US dollar. This system helps them to manipulate the Chinese dollars and makes it less than the US dollars. Buyers will not want to get products from the US, when they can get cheaper products from China (making a bigger profit for China).
As a personal opinion, I believe that an other key for China's successful economy is the one child law. Making life more affordable for the Chinese people, and creating an economy that keeps on growing. For example, instead of having to feed five extra mouths you would only have to feed one.
The one key measure that allowed China to be number is by keeping the worth of their currency much less than the US dollar. China does this to help make the products are shipped to America cheaper compared to the global market. The low labor costs and the high demands of goods fuel China's economy by forcing industries to produce faster and more effecient ways to the global market. The extremely cheap products attract companies to keep buying from chinese manufacturers The continuous cash flow to china for these cheap products resulted in China's economy to surpass the US's. According to www.investipedia.com, purchasing power parity is "An economic theory that estimates the amount of adjustment needed on the exchange rate between countries in order for the exchange to be equivalent to each currency's purchasing power." Purchasing power parity is important because this gives the ratio of the dollar to be equivalent to a certain value for other currencies so that America is able to have a market with other countries.
ReplyDeleteThe one key measure that allowed China to be number one is their manipulation of their currency to be worth much less than the US dollar. While Chinese currency is very cheap, their products are also very cheap, and helps them on the global market; that's why most products are labeled "made in China". The cost of living in China is also very low. In the US we live luxuriously compared to other countries. The cost of living in the US is about $55,000 while the cost of living in China is about $8,000. This means more money to the government.
ReplyDeletePurchasing power parity is a component of some economic theories and is a technique used to determine the relative value of different currencies. It matters because it allows China to manipulate their currency to be a lower value. If China keeps their currency value low, it would bring in more economic flow than the US would.
The one key measure that allowed China to be number one is it's extremely low cost of living compared to the United States. The chart that displays the current prices of the gross domestic product per capita per country breaks down to nearly $55,000 per capita per year in the U.S., compared with less than $8,000 per person in China. Purchasing power parity, or PPP, is a technique used to determine the relative value of different currencies. It's important on this topic because China is manipulating its currency to make the dollar over there worth a lot less in the United States. The article puts it simply by saying "It is crazy cheap to live in China and crazy expensive to live in the U.S., so a trillion U.S. dollars are worth a lot more in China than in the U.S.". This makes goods and services in China a lot less expensive, therefore more consumers go to China for their goods, in turn making the Chinese economy currently the strongest in the world.
ReplyDeleteChina's gross domestic product is worth $17.6 trillion. Their GDP was adjusted for China's relatively low cost of living as compared with $17.4 trillion for the U.S. China's share of the global economy is now slightly bigger than America's, at 16.5% to 16.3%. China is manipulating its currency to be worth much less than the dollar. They're using this tactic to help make Chinese goods cheaper than U.S. goods on the global market. GDP breaks down to nearly $55,000 per capita per year in the U.S., as compared with less than $8,000 per person in China. Figures are adjusted for the relative costs of living in both countries, which is known as purchasing power parity. It's something economists do to try to make comparisons between countries more fair. PPP is important because of the idea that identical items in different countries should have the same "real" prices. The reason for this is that a consumer should be able to sell an item in one country, exchange the money received for the item for currency of a different country, and then buy the same item back in the other country and not have any money left over to be fair.
ReplyDeleteWe have many things we need to solve in this country and racial prejudice is one of them. I'm am not the type of guy to stand up and critique people on the mistakes they made unless there is no effort to correct them. It is everyone's fault the problems we are having not just whites and not just blacks either we collectively as a people have to solve this problem and it starts with little things like the housing problems. If you expect for our "great" nation to be great we have to show it and not just write checks we can't cash. We need to be vigilant in whom is running our housing association to insure that no racial profiling will affect where we may reside. In this nation we pride ourself on the democeacy we have created and the ability to govern our own lives. We need not to recreate problems of our past but yet create sucess, leadership and social standard for years to come. We upset and deeply hurt a race when we segregate. We are not 5, 10, or 15 different nations made up of diffeent races but yet we are one nation whom is proud, strong, and unified. Leadership in ferguson need to take a self observation on what changes to make because all they are doing is upsetting people and that is creating a widespread range of violence which could not only effect ferguson but effect the whole world we live in and this calls for national attention.
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