| You are
here: Step 1: Considering exporting > The various environments you will encounter abroad > The
economic environment > Gross domestic product (GDP) |
|
|
|
Gross domestic product (GDP)
A widely accepted
measure of a country's economic performance is its GDP, which
is the total market value of all final goods and services
produced in a particular country within a year. The GDP measures
the productive resources of a country and does not, therefore,
include such payments as social security which are not the
result of genuine production but rather a transfer of money
from one area of society, i.e. the government, to another.
GDP is often used for the purposes
of measuring the standard of living of a country. More
specifically, the standard of living is derived by dividing
the total production of a country (GDP) by its population(GDP
per capita). This figure helps compare the quality of life
of different countries, and provides a basic measure of
the economic strength of a particular society as well as
a comparative measure by which a country can evaluate its
economic progress.
|
