macroeconomic variable- comparisons between 2 countries

This is due to the fact that appreciation and depreciation from one year to the next will make the OER GDP value fluctuates even if the home-currency-denominated GDP stays constant (`Notes and Definitions , 2006

With regards to both arguments , within this , we will use the Purchasing Power Parity method to measure economic development of a nation compared to another

II .2 .3 GDP and GNP

There is another concept that is very similar to the GDP . However , GDP is still considered the most popular one . According to the GNP concept

the GDP is not a fair measurement of a nation 's productivity because it involves goods and services produced by foreign citizens . For instance if an American company is producing 100 billion yen worth of product and services , than the 100 billion yen should be excluded from Japan 's productivity measurement . On the other hand , good and services produced by a Japanese company outside of Japan should be included to Japan 's productivity measurement

This view , however , is unpopular among economist that studied domestic economies . They prefer to the GDP concept because it is considered to be the more natural concept that measures firms operating within a given country . It seems that in economic studies , location of a business is more important than its nationality (Roubini and Backus , 1998 National Background

China and New Zealand are two countries which represents considerably different economy in many respects . It must be noted that China is still considered as the developing country , while New Zealand is a well-developed one . Geographically , China has more than 9 million square kilometer of mountains , high plateaus , deserts , plains , deltas and hills which gave birth to coal , iron ore , petroleum , natural gas , mercury tin , and many other valuable minerals (`China , 2006 . New Zealand on the other hand , has...