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This is because the distances span several orders of magnitude. The earth-moon distance is approx 385000 kilometres, so km can be used for such measures. But the distance from the sun to Neptune is 5 approx billion km and so the earth-sun distance (1 AU) becomes a more useful unit. But that is no use for measuring distances to the stars: the nearest is approx 0.25 million AU and so a light year becomes a more appropriate distance. In terms of orders of magnitude, a parsec is only 3.26 light years but the unit comes from the method of measurement.

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