Final answer:
To compare GDP across countries, adjustments for exchange rates and population are required. Exchange rates allow conversion to a common currency, and GDP per capita offers a more accurate reflection of economic well-being than GDP alone.
Step-by-step explanation:
GDP can be compared across countries once it is adjusted for exchange rates and population. Since GDP is measured in a country's currency, to compare different countries' GDPs accurately, we need to convert them using the exchange rate, which reflects the price of one country's currency in terms of another.
With GDPs expressed in a common currency, we can then make a fair comparison by calculating each country's GDP per capita, which divides the GDP by the population.
This creates a more meaningful measure of a nation's wealth, as large populations can distort the significance of GDP alone.