Wednesday, October 15, 2014
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?
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China's overall economic strategy was proven to be successful where they would cause their currency to be much less lower than the U.S dollar, which in turn causes more countries around the world wanting to buy the cheaper Chinese goods that lead to a larger economy. China's strategy was "stated" to cause American politicians to be enraged by their concept of lowering their currency, but in turn America has also benefited from purchasing cheaper Chinese goods/products.
ReplyDeletePurchasing power parity, or PPP, is the component in economics that determines the relative value of different currencies. This general term matters in this topic about how China was able to manipulate their currency to become lower value compared to the U.S dollar, and how it was determined that the U.S dollar now has a larger economic value compared to China's currency.
One giant key measure that allows China to be number one is their clever manipulation of their currency. They purposefully made their currency, in comparison to the US dollar lower to make all of their products cheaper than our stuff, especially on a global scale. Another thing that has helped them out enormously is their booming factory sector.
ReplyDeletePurchasing power parity is what determines the relative value of the different countries currencies. It is relevant to this because of the sheer fact of China's currency being significantly lower than ours which in turn causes their economy to go sky high and ours just level out. Cheaper things equals more buys; it's basic economics. In my opinion, we need to start thinking like China.
One major key that allows china to be number one is the fact that china has a high gross domestic product that is $17.6 trillion. That is $.2 trillion more than the United States. This is because China is known for producing many cheap products and selling it to outside countries. They have cheap raw materials and many workers who work for little money so they get a high profit from selling to other countries.
ReplyDeletePurchasing Party is the relative costs of living in a country. Or how much an person need to spend in order to live in a certain country based on the prices of products in that. The purchasing party of China is cheap and the purchasing party of The United States is very expensive. So it means that the $17.6 trillion dollars of China is worth a lot more than $17.6 trillion. And $17.4 trillion dollars is worth less than that in the U.S. That helps China to make products cheaper than the U.S. on the global market.
The one key measure that allowed China to be number one is the gross domestic product (GDP). China's GDP is $17.6 trillion, just ahead of the United States GDP of $17.4 trillion. However, China's GDP has been adjusted for the cost of living which is much lower in China than in the United States. A larger GDP also means that China has a slightly greater share in the global economy at 16.5% compared to the 16.3% for the U.S.
ReplyDeletePurchasing power parity is the relative cost of living in a country. Purchasing power parity matters because it allows economists to make important comparisons between different countries because it concerns relative cost of living instead of absolute cost of living in a country, which makes the comparisons more fair. Purchasing power parity can also be used to determine the relative power of different currencies.
One key measure that allows China to be number one is their gross domestic product , its valued at $17.6 trillion, and their low cost of living, which the US in comparison has $17.4 trillion .
ReplyDeleteAlso, China's share of the global economy is now slightly bigger than America's, at 16.5 percent to 16.3 percent. Another factor may include the fact that cost of living in both countries different significantly. t is really cheap to live in China and really 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.
Purchasing Power Parity can be described 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. Its important here because it shows how expensive it is to live in the United States and how much cheaper it is in China .
The one key measure that allowed China to be number one is their Gross Domestic Product (GDP). China has a GDP of $17.6 trillion, which is $0.2 trillion above the United State's GDP. However, these GDPs are adjusted for the cost of living in each country. The cost of living in China is much lower than the cost to live in the United States.
ReplyDeletePurchasing power parity is the relative cost of living in a country. It is how cheap or expensive it is to live in a certain country. This matters because it allows economists to make comparisons between the countries, such as their GDP. This also makes comparisons more fair and can determine the power of the countries' currencies.
This is Seth Adler
DeleteThe one key measure that has allowed China to be number one is their constant manipulation of their currency, making it less than the American dollar. This has made Chinese products much cheaper than America’s products in comparison. A growing demand for Chinese products has allowed the Chinese factory sector to flourish, making their economy grow larger.
ReplyDeletePurchasing power parity adjusts the exchange rate between countries in order for the exchange to be equivalent to each currency’s purchasing power. This allows economists make comparisons between countries fair since it can be cheap to live in one country, and expensive to live in another.
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.
ReplyDeleteThe one key measure that allowed China to be number one is their manipulation of their currency to make it be worth less than the dollar, which causes Chinese products to be cheaper than U.S. products on the global market. This also causes that the cost of living in China is far less than the cost of living in America, “a trillion U.S. dollars are worth a lot more in China than in the U.S.”. China has a better "purchasing power parity" or the relative costs of living between the two countries, which makes the comparisons between the two countries fairer. It matters because it shows why China’s economy has skyrocketed whilst the United States’s has just stayed constant.
ReplyDeleteInevitably, China has now surpassed the U.S in one key measure. China does this with its currency, which is less than the U.S dollar. Chinese products tend to be cheaper than American products on the global market, making it a more enticing buy. The factories where these products are made start to boom as well, which help China's economy grow more rapidly.
ReplyDeletePurchasing power parity is an adjustment for relative living costs comparing countries. This matters because it helps economists use a fair measure when comparing costs between countries. China's currency isn't the same value as the U.S dollar so it makes comparison more equivalent.
China was able to become the number one economy in the world, adjusted for PPP, by devaluing their currency against the U.S. dollar. By doing this, costs for exporting were minimized and Chinese products were very cheap for other countries around the world. This encouraged other countries to purchase more Chinese products and export more jobs to China, which bolstered the Chinese economy.
ReplyDeletePurchasing power parity is the difference in relative costs of living between countries. Economists prefer to compare GDP's based on PPP because the value of money is different in different countries. A given amount of money in two different countries will get you a different amount of things between the two countries. So even if the GDP in America is technically higher than the GDP in China, the cost of living is high enough in America to offset that difference in GDP and give China the stronger economy.
The one key measure that allowed China to become the number one economy would be their Gross Domestic Product or the GDP. China’s GDP is now worth around $17.6 trillion which is higher than the U.S. GDP around $17.4 trillion. However, China’s GDP is adjusted for their relatively low cost of living compared to the U.S. and so this has led to China’s share of the global economy to be slightly higher than America’s which is 16.5% to 16.3%.
ReplyDeletePurchasing power parity is a term fancy economists use to define the adjustments for relative costs of living in a country. Purchasing power parity is important to economists because it allows them to compare between different countries by using a standard calculation where it makes the situation and numbers fair rather than skewed. For example, with this, economists have shown that is insanely cheaper to live in China compared to the U.S. and a trillion dollars is worth more in China than in the U.S.
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ReplyDeleteChina’s recently surpassed the United States by one specific factor. China had altered its currency to become less than the USD. This has been a serious downfall for the United States in addition to the fact that China’s products are known for their price decrease in comparison to America’s in the global market. This brings other countries to China for purchasing international products, also bringing business and jobs to the country, as opposed to America.
ReplyDeletePurchasing power parity is the relative cost of living in different countries. This is influenced by how much products cost in this country combined with average other living costs. This assists economists in comparing fairly rather that using an absolute price difference. Ultimately purchasing power parity is used to determine the relative power of different currencies.
As it seems, China’s economy has now surpassed that of the United States with a gross domestic product of $17.6 billion compared to the U.S.’ of $17.4 billion. The main key measure that led to this increase had to do with China’s manipulation of its currency to be worth much less than the dollar. China does this to make their products appear cheaper than U.S. products so that it seems more appealing on a global market. Also in addition to the currency manipulation, China’s factories have boomed as well adding to the expansion of the Chinese economy.
ReplyDeletePurchasing power parity is the adjustment needed to compare the relative costs of living in certain countries. This matters because this is what economists use to make comparison among countries more equal. When comparing both China and the U.S., there is a value inequality between the Chinese Yuan and the U.S. dollar and the PPP incorporates this to make the comparison of equal value.
Going by gross domestic product, China has become the leader in the world’s economy, according to the International Monetary Fund, which states that China has $17.6 trillion and America $17.4 trillion of GDP. Even being fair with a “purchasing power parity,” there remains this unequivocal truth: “It is crazy cheap to live in China and crazy expensive to live in the U.S.” Thus, a trillion U.S. dollars are worth more in China than in the U.S. The cheapness of these products has been the alleged downside for American trade, though politicians don’t mind the easy money. Still, it has led to our comparative stagnation to a growing China.
ReplyDeletePurchasing power parity is basically the general cost of living in a country. By taking this into consideration, economists can better estimate who outdoes another country. It helps to put countries into context, rather than through face value. It makes the system even fairer, showing the clear reign of China.
One major key that allows china to be number one is the fact that china has a high gross domestic product that is $17.6 trillion. That is $.2 trillion more than the United States. They are supplied with raw materials and many workers who work for little money so they get a high profit from selling to other countries. Their currency to be much less lower than the U.S dollar, which in turn causes more countries around the world wanting to buy the cheaper Chinese goods that lead to a larger economy.
ReplyDeletePurchasing power parity is the difference in relative costs of living between countries and is what determines the relative value of the different countries currencies. This also makes comparisons fairer and can determine the power of the countries' currencies.
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ReplyDeleteOne major key that allows china to be number one is the fact that china has a high gross domestic product that is $17.6 trillion. The cost of living in China is much lower than the cost to live in the United States. They purposefully made their currency, in comparison to the US dollar lower to make all of their products cheaper than American products. This growing demand for Chinese products has allowed the Chinese factory sector to flourish, making their economy grow larger.
ReplyDeletePurchasing power parity is the adjustment needed to compare the relative costs of living in certain countries. This matters because this is what economists use to make comparison among countries more equal. It also shows how expensive it is to live in the United States and how much cheaper it is in China .
China has recently overtaken the U.S. in GDP, a key measure of a nation's economy. China's GDP has just reached 17.6 trillion, compared to a 17.4 trillion GDP of the United States. China's GDP has steadily been gaining on the United States' GDP since the 1980s and officially passed it in the most recent "World Economic Outlook." China's GDP is expected to continue to outpace the United States' GDP in the next few years.
ReplyDeletePurchasing power parity is the adjustment to the GDP based on the cost of living. The cost of living in China is significantly less than the cost of living in the United States, causing China's GDP to outgrow the United States' GDP. China has manipulated the value of its currency to increase global sales. However, ignoring purchasing power parity, the sheer size of the United States' economy "dwarfs" China's, at 17.4 trillion to 10.4 trillion.
One key factor that has allowed China to be number one is their Gross Domestic Product (GDP). China is able to hire low paid workers and they have extremely cheap raw materials to make goods. These goods are sold around the world for a cheap price and they bring in huge profit. The demand for cheap products in really high which makes China a perfect middleman.
ReplyDeletePurchasing power parity is what determines the relative cost of living in a country. This allowed economists to determines the relative cost of living in a country with a fair judgement. This allows people to know how expensive or cheap it is to live in a different country compared to the one they are living in now.
China’s economy is now the biggest in the world. Its growth domestic product is worth 17.6 trillion dollars while the United States has a gross domestic product of 17.4 trillion dollars.
ReplyDeletePurchasing power parity is a technique used to determine the relative value of different currencies. It is very cheap to live in China and it is very expensive to live in the United States. So a U.S. dollar is worth much more in China than in the Unites States. China manipulates its currency to make it worth less than the dollar so that Chines stuff would be cheaper on the global market.
China is smart. They realized that selling cheap, making the value of their dollar cheaper the ours, would benefit in the long run. Most of us have bought low priced items from China online. The only thing that could seemingly cause their downfall is that in many cases low price also means low quality. Purchasing power parity makes it easier to compare value. The U.S dollar can buy less in its own country than in China. The cost of living is lower in China. Their economy benefits from this because their workers are paid very little, and their items are sold cheaply. They have a lot of income from people buying cheap products. It all adds up. Sometimes you need to trust that your item will sell.
ReplyDeleteChina has “finally” become the world’s leader in GDP, and thus the economy. Its exponential growth and ultimately cheap products has led to an large increase in gross domestic product, which has gained the country an advantage over previous leader, the USA, by an estimated $.2 trillion. Through GDP, according to the International Monetary Fund, China is “crazy cheap” and the U.S “crazy expensive” to live in. Subsequently, the cheapness of goods in China, while secretly making politicians here happy, has given it the upper hand.
ReplyDeletePurchasing power parity is the cost of living comparative to the country. This makes the fairness of comparing countries all the more fairer, since it puts countries into an established “context.” From this balance, it is clear that China has the upper hand – and will continue to have the upper hand in 2018. Frighteningly, it is an “infinite” advantage.
One key factor that has allowed China to be number one is their Gross Domestic Product a.k.a. GDP. China is able to hire low paid workers and they have can use cheap raw materials to make goods. These goods are then sold around the world for a reasonably cheap price, which in return will bring in huge profit. The demand for low-cost products is pretty high which makes China a great candidate for this endeavor.
ReplyDeletePurchasing power parity is what determines the relative cost of living in a country. This allows for economists to determine the relative cost of living in a country with a more accurate judgement. This allows people to know the prices of different places in order to find where they can get more of a bang for their buck and maybe make their own capital gain in other places compared to where they are living now.
The one measure that allows China to be number one is their way of manipulating their currency. China purposefully set their currency, in comparison to the US dollar, lower to make their products cheaper, on a global scale. Another thing that has helped them out big time is their booming factory sector.
ReplyDeletePurchasing power parity is what determines the relative value of the different countries currencies. It is relevant to this because of the sheer fact of China's currency being significantly lower than ours which in turn causes their economy to go sky high and ours just level out. Cheaper things equals more buys. We need to trust our items and start being friendly to China's ways.
China has, inevitably, surpassed the United States in one key measure, the gross domestic product (GDP.) China’s gross domestic product is worth $17.6 trillion, just towering slightly over the U.S.’s $17.4 trillion, resulting in its first place position. According to the International Monetary Fund, this $.2 trillion difference is adjusted due to China’s fairly low cost of living. Taking into account, the “purchasing power parity”, it is still “crazy cheap to live in China and crazy expensive to live in the U.S.” Therefore, what is worth a trillion U.S. dollars is worth much more, monetarily in China. Consequently, China manipulating its currency makes for a much smaller dollar value, creating cheap products, and in turn, helping to make a booming Chinese economy.
ReplyDeletePurchasing power parity is the adjustment, utilized by economists, for the cost of living in different countries. Taking this in consideration, economists try to level out the playing field to make the comparison fair. This matters because it allows economists to view the numbers as a whole and accurately addresses the monetary values. As seen in the relation between the U.S. and China alone, looking just in sheer size, the U.S. economy dwarfs that of China’s at $17.4 trillion to $10.4 trillion.
Clearly seen by charts displaying GDP (Gross Domestic Product) adjusted to PPP (Purchas Parity Power), China has finally overcome the world’s economic leader: the United States. It’s a $.2 trillion difference. Not only this, but this switch will increase, with the International Monetary Fund expecting this trend to continue indefinitely. There is one major reason for this: a comparative advantage in GDP, which stems from various factors. Of these, the article makes notice of the cheapness and mass production of Chinese goods, which has aided Chinese citizens and clandestinely aided American politicians, who apparently pretend to be affronted by these low prices. Their ability to sell en masse and keep themselves below the currency of the dollar bill has led to their exponential growth in recent years, never reaching stagnation, especially when America is “crazy expensive to live in” and China isn’t.
ReplyDeleteTo make these calculations and charts comparable, the PPP is needed. This basically adjusts relative costs of living in countries to make them comparable. This places countries side by side with few variations that could make it harder to see, in this case, if China has “beaten” America. These calculations, adjusted for this fairness, are disturbing, as 2018 shows a vast difference in respective GDPs, with China being in the lead once again.
the one key feature that allowed china to rise to number one global economy is there relatively low cost of living. in comparison too america the chines pay nothing 2 live wile americans are paying a fortune just to live! purchasing power 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 does matter, because a US dollar might be worth 3 or 4 of chinas dollars. There for the US dollar has more purchasing power! this matter because china keeps amour there currency is worth down to keep its prices down. This has helped there economy grow very rapidly, because every one buys from china because of the low cost. the manipulation of Chinese currency is so effective in keeping cost down that, it cost less to create something in china then ship it to the US. instead of making it right here on US soil.
ReplyDeleteChina jumped ahead of the US by purposely devaluing their own currency purchasing power. This leads to cheap labor in the country because their dollar can be stretched further. This provided incentives for US companies to shift operations from the US to China. Purchasing Power Parity is the difference between two countries currency value. For example in the US a dollar can get you fries at McDonalds, but in China that dollar can buy you a whole meal.
ReplyDeleteThe one key measure that allowed China to become number one was the intentional devaluation of their own dollar to make it worth slightly less than the US dollar, causing money in China to be able to be stretched out further. This along with China's low cost of living (also known as purchasing power parity) allowed China to overtake the US with a GDP difference of .2 trillion dollars.
ReplyDeleteChina's overtaking of the United States was inevitable and would come eventually. According to the IMF it was projected to surpass the United States.
ReplyDeleteThe one key measure that has allowed china to move to the number one economy was the gradual devaluation of the currency. Which allowed china to be able to expand without any consequences besides a decrease in monetary value.The purchasing power parity is the low cost of living that allowed China to overtake the GDP defict in terms of raw purchasing power. SInce the cost of living is incredibly low, the face value of money becomes more substantial in terms of what you can purchase. In comparison with the United states where living in expensive and even though the currency has more value it still maintains less purchasing power than China. The United States economy by sheer size is larger than china. The United States still bolsters $17.4 trillion compared to China's 10.4 trillion.
The one key measure that allowed China to be number one is the gross domestic product (GDP). Its exponential growth and ultimately cheap products has led to an large increase in gross domestic product, which has gained the country an advantage over previous leader, the USA, by an estimated $.2 trillion. However, the cost of living in China is much lower than the cost to live in the United States.
ReplyDeletePurchasing power parity is the adjustment needed to compare the relative costs of living in certain countries. This matters because this is what economists use to make comparison among countries more equal. It helps to put countries into context, rather than through face value. It makes the system even fairer, showing the clear reign of China.
One key measure that allowed China to become number 1 was its low cost of living. Even though the U.S dollar is worth more this is cancelled out because of the high cost of living. When taking into account the cost of living of each country and the GDP it was shown that China comes out on top. If that weren't enough it is expected that this growth of China is indefinitely.
ReplyDeleteThe purchasing power parity is what is used to make comparisons between countries a lot more fair i.e taking into account different factors within the country. It matters because it allows us to realize the true size of China. This growth is happening because of the devaluation of its currency making Chinas products a lot cheaper on the global market allowing their factories sector to go up which in turn helps the country on a whole.
The key measure that allows China to have the world’s biggest economy is China’s low cost of living relative to that of the cost of living in the US. Purchasing power parity is a term used by some economists and is another name for the adjustments made to a country’s gross domestic product using the cost of living. Meaning that it is cheaper to live in China than it is to live in America, the dollar has more use or worth in China.
ReplyDelete