In this weeks discussion board I will explain the advantage of the the forum and what it has developed overtime for a better way to analyze the world’s gross domestic product (GPD). Based on the World Economic Forum (WEF) its key to successly move forward in the future is to combine , survive by staying relevant and up to date lastly by having an solution. For example, WEF states to develop ways of combining communities so that together they are much more than the sum of their parts . Next they plan to survive and thrive the world’s leading corporations this way they will be able to learn from the next generation . Then the world economic forum states the solutions to the problems of the future cannot be found without understanding the motivations of global business and how it can leverage them for change (Klaus Schwab . Founder and Executive chairman). Whereas although the world’s gross domestic product is the total of all value added and created in an economy the WEF incorporates all of what the GPD offers but on a wider bases and more evolved. Being that the world is way more advanced than how it was in the past and WEF ability to incorporate as well as keep track of the worlds resources so easily is what makes it so superior.
The Bureau of Economic Analysis (BEA) defined GDP as the value of the goods and services produced by the nation’s economy less the value of the goods and services used up in production. GDP is also equal to the sum of personal consumption expenditures, gross private domestic investment, net exports of goods and services, and government consumption expenditures and gross investment.
The new indicators developed by the Forum outperform GDP in three ways: they are more comprehensive, more adaptable to change, and more transparent.
To begin with, the indicators used by the Forum are more comprehensive than GDP. Only the value of final products and services produced inside a country’s boundaries is captured by GDP. It excludes the value of intermediary products and services, as well as non-market activities such as unpaid household labor. All these factors are captured by the Forum’s metrics, providing a more comprehensive view of economic activity.
Second, the metrics used by the Forum are more adaptable to change. GDP is a lagging indicator, which means it only records economic activity that has already occurred. The Forum’s indicators, on the other hand, are leading indicators, capturing upcoming economic activity. Since a result, the Forum’s indicators are more relevant for policymakers, as they may assist them in anticipating and responding to economic developments.
Third, the measurements used
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