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Definition English:
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Adjustment that eliminates the distortions generated by the different price levels of a product, homogenizing the value of one or several products to be bought, to the same base currency. It is usually used to compare the total production of goods and services of one country with respect to another or to a group of countries. For comparative purposes, it is necessary to express the total production to the same base currency, since each country expresses its production in a local currency unit and this could be influenced by a high price level or vice versa. (Free translation from: https://bit.ly/2gNLzvf) |