Pepsi then converted its payments into cash by selling these military items as scrap metal. Question of Growth GNP and GDP numbers are a snapshot of a country's economic output and do not indicate whether a nation's economy is growing or shrinking. Problem of Averages GNP or GDP per capita do not tell us whether there is significant wealth among all of a nation's citizens or whether wealth is concentrated in the hands of a few people. Pitfalls of Comparison GNP and GDP numbers are misleading because official exchange rates do not tell us what a certain amount of currency can buy in a country-sometimes people have little money but that money can go a long way in buying all their essentials. It helps us to see what a currency can actually buy in real terms in a nation.
Human development goes beyond just calculating a country's financial wealth.
Nations are commonly classified as being developed , newly industrialized , or developing . Classifications are based on national indicators such as GNP per capita, portion of the economy devoted to agriculture, amount of exports in the form of industrial goods, and overall economic structure. These countries are highly industrialized, highly efficient, and whose people enjoy a high quality of life. These countries have recently increased the portion of national production and exports derived from industrial operations. Developing Countries have the poorest infrastructures and lowest personal incomes.