Economic Geography SRPs, Essential Revision Notes
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Table of Contents
Gross Domestic Product (GDP) refers to the total value of goods and services produced in a country per year, i.e. the total output of the country. It is calculated per capita (per person) by dividing the monetary value of GDP by the population.
Gross National Product (GNP) refers to the total value of goods and services produced in a country (GDP) plus income from overseas investments, minus income earned within the country by foreigners, i.e. MNCs. It is calculated per capita by dividing the total GNP by the number of people in a given country. It is a measure of national income per person.
Each country’s GDP and GNP is calculated with PPP (Purchasing Power Parity) or purchasing per head of population in $US. This is the average income per capita in relation to what a $US dollar would buy in that country, i.e. a dollar in Ethiopia will but you more than a dollar in Ireland.
It is estimated that, in 2010, the per capita income in the rich countries or MDCs was 95 times that of the poorest countries, LDCs. 200 years ago the income gap between the rich and poor countries had an approximate ratio of 3:1
Since the Industrial Revolution, combined with the impact of colonialism, the poverty gap between rich an...