Comparing GDP is extremely difficult because of many factors, such as it's unreliability and exchange rates.
Since every country has it's own currency, it is impossible to compare one currency to another. For example, the US dollar cannot be compared with the Korean Won. This is why exchange rates exist. However, comparing GDP while using exchange rates is a very inaccurate way to compare GDP because exchange rates can fluctuate significantly over short periods of time. A currency may become stronger or weaker in an instant. This also means that if the exchange rate for a certain currency increases, their GDP also increases implying that there has been an increase in the standards of living. This is obviously not the case because the only variable that changed was the exchange rate. Also, exchange rates are more relevant to good but not to services. This means that when the exchange rates apply, the goods will be affected more significantly than the services leading to an inaccurate GDP.
When the GDP of Malaysia is compared to the GDP of South Korea, South Korea's GDP is higher because generally labor is more expensive in South Korea compared to Malaysia. If one were to compare Big Mac prices from McDonald's, the Big Mac in South Korea would be significantly higher because the labor is more expensive there. The minimum wage (with exchange rates applied) may be higher and so the cost of making the Big Mac and 'delivering' it would cost more therefore increasing GDP.
Since every country has it's own currency, it is impossible to compare one currency to another. For example, the US dollar cannot be compared with the Korean Won. This is why exchange rates exist. However, comparing GDP while using exchange rates is a very inaccurate way to compare GDP because exchange rates can fluctuate significantly over short periods of time. A currency may become stronger or weaker in an instant. This also means that if the exchange rate for a certain currency increases, their GDP also increases implying that there has been an increase in the standards of living. This is obviously not the case because the only variable that changed was the exchange rate. Also, exchange rates are more relevant to good but not to services. This means that when the exchange rates apply, the goods will be affected more significantly than the services leading to an inaccurate GDP.
When the GDP of Malaysia is compared to the GDP of South Korea, South Korea's GDP is higher because generally labor is more expensive in South Korea compared to Malaysia. If one were to compare Big Mac prices from McDonald's, the Big Mac in South Korea would be significantly higher because the labor is more expensive there. The minimum wage (with exchange rates applied) may be higher and so the cost of making the Big Mac and 'delivering' it would cost more therefore increasing GDP.