?ublished by IMF', form together a complete set of exchange rates which embraces CL1 States Members of the United Nations. -08. The main problem in using exchange rates for comparisons of domestic txpenditure of different countries is that such rates are based on the prices of lnly those goods and services that are internationalîy traded, In most cases, 'uch products renresent only a small part of al1 services and commodities that -re produced within each country. Thus, exchange rates established by international rade can only be regarded as approximations to the rates that would prevail if al1 ypes of goods and services were taken into account, or if only military goods and ervices were considered. 39. This problem of using exchange rates for international comparisons does not pply only to the case of military expenditures but to other domestically accounted Kpenditure categories as well. The United Nations Committee on Contributions is, ir instance, faced with the same problem. / . . . -50,., 110. The Committee on relationship of goods greatly from exchange Contributions stated in one of its reports that "the price and services not internationally traded may indeed depart rates. g/ The Committee also stated that, thus, the real -_ __ value to each inhabitant of hrs share of the national income may be cuite different from the purchasing power which the same amount would represent in another country after conversion at the current exchange rate. 111. This had led the Statistical Office of the United YTations to initiate a study aiming at the elaboration of a set of purchasing poner parities (PPPs) that could be used instead of exchange rates for comparisons of data on "real" gross domestic product (GDP) per ca-pita. Such parities may prove to be more suitable than exchange rates to use for the purpose of comparing military expenditures. This study ITas 
**Analysis**
The text discusses the limitations of using exchange rates for international comparisons of domestic expenditure, specifically in the context of military expenditures. It highlights the need for a more accurate method to compare the "real" value of GDP per capita across countries. The text also mentions the study of purchasing power parities (PPPs) as an alternative to exchange rates.

**Category**
International trade, Economics