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> here are (many) companies with revenues greater than most countries IS that true? What do you define as the revenue of a country? Tax revenues? That is just
by graemep 1y ago
> here are (many) companies with revenues greater than most countries
IS that true? What do you define as the revenue of a country? Tax revenues? That is just the government. GDP/GNP/GNI? That comparison for that should be profit, and only a handful of really big companies (Saudi Aramco, Apple, that sort of size) have a profit as large as the GDP of mid-size middle income countries (e.g. Sri Lanka) or small rich countries (e.g. Luxembourg). There is a long tail of small or poor countries so most countries by number, but most people live in a country with a GDP that is an order of magnitude or two greater than any company's profit.
- hiatus 1y agoWhy would GDP be the proxy for a country's profit? If I pay someone to build a house and another person to tear that house down, both activities contribute to GDP while producing nothing of tangible value.
- adgjlsfhk1 1y agogdp is a revenue like number, not a profit like number.
- graemep 1y agoIt is closest to value added something most companies do not disclose but is closely related to profit but is NOTHING like revenue.
- adgjlsfhk1 1y agono, if you trade a dollar back and forth 1000 times with a friend, you are adding $1000 to the GDP.
- graemep 1y agoIf you pay someone a dollar, that is because they supplied you with something worth a dollar - i.e. a dollar's worth of value added to the economy.
- adgjlsfhk1 1y agoright, but if an item goes through 10 different factories to be assembled the price each pays from the previous gets added to GDP.