The values of real GDP and real GNI are almost the same in countries where a significant fraction of domestic production takes place in foreign-owned firms.

Question

Quizplus · Accepted Answer

Real GDP measures the value of all goods and services produced within a country's borders, regardless of ownership, while real GNI measures the income earned by a country's residents, regardless of where they earned it. In countries with significant foreign-owned firms, a portion of the income earned by those companies may not be captured in real GNI, leading to a difference between the two measures.

The Values of Real GDP and Real GNI Are Almost