The per capita GNP in a poor country relative to that of the United States will tend to be higher when the PPP exchange rate is used to convert currencies than if the market exchange rate is used. This is mainly because goods and services that are not traded internationally tend to be cheaper in poor countries the US has a larger financial sector than the poor country the PPP exchange rate has been specifically designed to make poor countries appear richer than they really are GNP does not include the value of goods that are not traded internationally