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by deepVoid
2644 days ago
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"America has a far bigger GDP"
It depends on how you calculate it. According to PPP, China has a GDP of 25 trillion vs the US of 20 trillion[1]. Yes, China has a bigger market and bigger GDP. If you calculate nominal GDP, China has ~14 trillion vs the US 20 trillion. US is bigger nominally, but not far bigger. [1] https://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP) |
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Moreover, you have to understand why PPP exists in the first place. Let me give you a hint: it has to do with arbitrage.