Courltry Per capita GDP Ratio of real GDP in .1970 US dollars at PPPs to nominal Ratio of PPPs (at PPPs) ,$DP at exchange rates to exchange rates Kenya India 303 2.12 ,473 331 3.35 .300 Malaysia 915 .422 Rungary 2 043 1.97 .507 Italy 2 356 1.37 .730 Japan 2 835 1.49 .673 Germany, Federal Republic of 3 747 1.22 ,820 114. Use of an average PPP (i.e., for GDP as a whole) is one alternative "co the use of exchange-rate conversions. The effect this would have is illustrated in -bable 15 below, showing total military expenditures for selected countries converted to dollars at prevailing exchange rates (as in sect. II C above) and at ex-trapolated ICP PPPs. Table 15. Alternative conversion of total military expenditures (millions of US dollars) Converted at Converted at Reporting period -- .- prevailina exchange rates -e-s ---- extrapolated PPPs Belgium 1/1/197fi-31/12/1978 2 664 2 034 France 1/1/198o -31/x? 11980 21 679 17 545 Germany, Federal Republic of 1/WgVMU12/1978 19 417 14 231 Italg l/l/lg8o-31/12/1g8o 6 966 7 347 Netherlands 1/1/wi'8-W12/wr8 4 508 3 236 115. An advantage claimed for the ICP PPPs is that they can be based on average prices in a group of countries. Thus the results are expressed in what are -termed international units - ang currency can be used as the basis. (The results of the ICP are expressed in international dollars). ~16. An advantage of specially-calculated military PPPs, if adequate price data were available, is that their use would minimize the effects of radically different pricing practices in countries being compared, such as minimal pay to conscripts versus competitive pay to voluntary enlisters, or subsidized / . . . -52=- prices for weapons versus unsubsidized prices. PPPs can show the equivalence in 
**Analysis**
The text appears to be discussing economic indicators, specifically Gross Domestic Product (GDP) and its conversion methods, including the use of Purchasing Power Parities (PPPs). The text also mentions the conversion of military expenditures to US dollars using different methods. This suggests that the text is related to economic development and international comparisons.

**Category**
Economic development, International trade