Choose one of them i will upload after paid Essay

Choose one of them i will upload later on paid - Essay ExampleThis form of writing provides a deep analysis of Purchasing Power Parity and highlights some of the PPPs importation in the economy. PPP theory is used in various situations including adjustments for the impairment differences between countries and provides the solution of canvass countries with dissimilar wellbeing standards as well as setting re-sentencing rate for new countries. By comparing the value of output from different countries and considering rally rate for ease of data comparison, a bargain of information between countries erect be obtained (Yavuz 2013, p. 118-121). PPP whitethorn make it easy to determine numerous things such as the speed at which the planetary economy grows and further determine a country, whose average persons are better off. Purchasing Power Parity supersede rate is one of the numerous techniques that can be used to convert different countrys statistics into a common currency (Ca rvalho & Nechio 2011, pp. 2412-2423). It is worth noning that the PPP exchange rate must not be similar with the one that prevails in the financial markets as it may either be more or less. Nevertheless, comparison of prices between different countries considers some(prenominal) products and services, which is a very complex task due to the massive amount of data, and the sophistications encountered in the process. In facilitating the price comparison process, always an International Comparisons Program (ICP) generates PPPs founded on global survey of prices where every participating country provides national average prices for several products. PPP is deemed a better measure of the overall wellbeing and its exchange rates are always fairly stable over time. Unfortunately, PPP is not easy to determine compared to other approaches such as the market ground rates since ICP is a huge statistical undertaking and there are challenges of methodological involved such as estimation of th e PPP rates that may lead to inaccuracies. Additionally, another challenge of using the PPP approach is that there are products that are never available in some countries thus confine their utilization in comparison purposes. According to Adhikari, Guru-Gharana & Flanagan (2011, p. 4-8) because these countries share almost same economic trend of consumption normally experience better PPP exchange rates compared to countries that do not have similar economic characteristics. On the other hands, most of the developing countries particularly in Africa and Asia may make it rugged to obtain an adjusted exchange rate for PPP because they do not have well-kept economic records deemed important in determining the PPP exchange rates (Taylor 2009, 19-24). Although it may be presumed that, the nominal exchange rate and PPP may be comparatively similar there is always, an evident of a mark difference in the PPPs accustomed exchange rates. It is significant to note that the PPP figures are no rmally grounded on the law of one price that indicates that products and services cost similar amounts everywhere such as the price of Big Mac in UK and France are similar. This assumption is vital in comparing the two products directly in