Question

What are the drawbacks to analyzing the global economy on a regional basis?

Short answer

Regional comparisons are broad-based and may not adequately capture an individual country's economic attribute.

Step-by-step solution

Step 1. Aggregate per capita income.

Aggregate per capita income vary widely across countries because a region can have both high and low income countries.

Step 2. Explanation

Because of variation in the per capita income, accurate representation of countries is difficult if the analysis is done on a regional basis. A region has both high and low income countries., so an aggregate data for the region would not represent all the countries accurately. In North America, US and Canada are high income while Haiti, and Honduras are low-income.