GEOG 4 Lecture Notes - Lecture 9: Purchasing Power Parity, Location Theory, Gross National Product
Document Summary
Globalization is a process by which economies of various nations around the world become increasingly interconnected over time through the interaction between people, businesses, and governments. Gross domestic product is the standard measure of economical output through the calculation of the total value of goods and services produced by a country within a given year. Currency devaluation is a deliberate downward adjustment that causes a decline in the value of a country"s currency, relative to one or more other currencies. It can cause a lot of negative effects, like inflation, accumulation of foreign debts, and reduced value of a country"s currency. Inflation is the rate at which the general level of prices for commodities is increasing, and as a result purchasing power is falling due to the excessive growth of prices. Effects of inflation can be identified through analyzing financial data and tracking.
