A country in which a substantial amount of the factories and stores that produce domestic goods and services are foreign-owned is most likely a country in which
A) GDP is much larger than GNP.
B) GNP is much larger than GDP.
C) GDP is roughly equal to GNP.
D) the relationship between GDP and GNP no longer exists.

Question

Quizplus · Accepted Answer

If a substantial amount of factories and stores that produce domestic goods and services are foreign-owned, it means that the profits from those businesses will be included in the GDP, but not in the GNP, as they are owned by foreign entities. This would result in a situation where GDP is much larger than GNP.

A Country in Which a Substantial Amount of the Factories