Which measure shows more equality among countries around the world— GNI

calculated at exchange rates or GNI calculated at purchasing power parity? Explain.

Gross National Income is used to compare incomes among nations through
removing the effects of currency exchange rates by converting everything to the
U.S. dollar using purchasing power parity (PPP) (World Bank Group, n.d.). Using a
consistent set of international prices for all commodities and services, the
purchasing power parity (PPP) computation of GNI as a measure of equality is used
to provide more accurate comparisons of living standards. The data must first be
transformed into a common currency before being compared across countries. The
PPP exchange rates allow for pricing variations between countries to be taken into
consideration during conversion, unlike in the calculation of GNI using market
exchange rates ( Human Development Reports, n.d.). GNI per capita (PPP $) so
reflects people's living levels across countries in a comparable manner. When
looking at purchasing power per country, calculating GNI at PPP takes into account
the fact that simple currency translations do not take inflation and other factors
into account. It involves calculating the value of a dollar of that currency in any
country around the world by converting it into a notional international currency.
Through GNI calculated at PPP, the gathering of information about a country’s
financial and economy status is more accurate and can be compare with other
countries.