Identify two of the leading countries in today's world economy. What criteria is used to determine the leading countries? List four factors to support the selection selection of why these two countries are in a leading position. Were these two countries in the same position 200 years ago? 100 years ago? 50 years ago? What accounts for the consistency or change of economic status ?
I have created a short and concise solution for you below using standard criterion employed by leading analyst agencies the world over. For the purpose of this solution, we are not going to include the European Union as a 'nation' for it is an economic region that, as a unit, is far more economically capable than the US with GDP of $14.8 trillion. The US impressively is right behind it at $14.2 but the US is one country and the EU consists of much of the Western European countries including the UK, France and Germany. As such the US remains the world's biggest economy. If you have any questions, please feel free to ask.
OTA 105878/Xenia Jones
It is important to define the important terms that determine ranking. Please take note of the following:
? GDP - or Gross Domestic Product is the value of all final goods and services produced within a nation in a given year (Wiki, 2009).
? GNP - or Gross National Product is value of all goods and services produced in a country in one year, plus income earned by its citizens abroad, minus income earned by foreigners in the country (cia.gov, 2009).
? PPP - or Purchasing Power Parity is an economic theory that states that ideally efficient markets, identical goods should have only one price to maintain price equilibrium (Brainpower, 2009).
? GDP per capita - Gross domestic product per capita is the mean value of the output produced per person, which is also the country's mean income (Wiki, 2009).
Key Determinants that rank Countries Economically
The International Monetary Fund, the World Bank, the CIA, key financial institutions and organizations like the UN and the EU put together key determinant factors that rank nations according to ...
The concise solution is in the form of an essay using standard criterion employed by leading analyst agencies the world over to identify and name the leading economies in the global stage. To understand the solution, a short glossary is included explaining terms like the GDP & the PPP. Countries are ranked according standard criterion/determinants with a Top 8 presented according to the Purchasing Power of the country. A historical discussion in the current status qou is also provided, giving background knowledge on how the current economic leaders came to be. A word version of the solution is attached for easy printing. The solution follows the APA format. References are provided.