Apple worth more than Poland

After reaching a value of $ 500 billion, Apple has become more expensive than Poland ... But can a computer be more expensive than the giant state?.
No, and here's why.
First the news with the same name appeared in CNN, CNN, and then it picked up media organizations around the world.

It seems unlikely that the market value of Apple, or market capitalization reached 506 billion dollars, making the company more ' expensive' than the whole of Poland, whose GDP is 470 billion dollars.

With a capitalization of Apple can claim to be the 20th largest economy in the world.
Separate the apples from the pears.

But this is not true. It makes no sense to compare two similar size. As well you can compare apples and peaches....

The fact that the company's market value is tied to the expected value of future profits of all its. While GDP measures the value of goods and services produced in the country for one year.

Says Professor Paul de Grove of the London School of Economics, compare the value of the company and the state can, but you must use the proper methodology.

' We need to predict future GDP growth in Poland, and then you take the current level and take into account the interest rate ...
' I suppose that as a result of Poland's rate will be multiplied by at least five' - he adds.

Thus, the comparative cost of Poland will reach almost 2.5 trillion dollars, and the country is far ahead of Apple.
Down to Vietnam.

There is still a valid way to compare two quantities. To do this, calculate the ' value added ' Apple and compare it with the GDP of Poland.

Dictionary of Business Terms defines the Financial Times ' value added ' as the increase in the value of something that has been processed and can be sold in a new form.

Such a comparison makes sense because the GDP measures the actual value added of the state: the value of all goods and services minus all that was imported.

' We will sell Apple and subtract all that is in the iPhone, but not produced the most Apple', - explains Professor de Grove.

' For example, some chips or a screen that produced somewhere in China. And then the difference will be that you can call Apple added value. And this figure, we compare the GDP, which is the value added in Poland ...
According to his estimates, in this calculation relative decrease in the cost Apple four or five times, and the company will be 56th in the list of largest economies, not 20th. It will keep up with Poland on 36 items, being ahead of Bangladesh and Vietnam as soon as.

Yet even with such adjustments, it is obvious that Apple - a very big company.
Who sets the rules of the game.

But if a company exceeds the amounts the state, does that mean that it is more powerful?.

Professor De Grove believes that this is not necessarily so.

' Just the volumes are not very many tell us about the relative power of the company in relation to the economy. States are sovereign in the sense that they are able to set rules. They can impose a tax on the company, and they do it ' - he explains.