If no foreign companies produce in a country, but many of the country's companies produce abroad, then
A) the country's GNP will tend to exceed its GDP.
B) the country's GDP will tend to exceed its GNP.
C) the country's GNP and GDP will tend to be equal.
D) the country's GDP will tend to be equal to its domestic income.

Question

Quizplus · Accepted Answer

Gross National Product (GNP) measures the value of goods and services produced by a country's residents, regardless of where the production takes place. Gross Domestic Product (GDP) measures the value of goods and services produced within a country's borders. If a country's companies produce a lot abroad and no foreign companies produce in the country, the value of what its residents produce (GNP) will be higher than the value of what is produced within its borders (GDP).

If No Foreign Companies Produce in a Country, but Many