Suppose U.S.-based Intel Corporation builds and operates a new computer chip factory in Ghana. Future production from such an investment would
A)increase Ghanaian GDP more than it would increase Ghanaian GNP.
B)increase Ghanaian GNP more than it would increase Ghanaian GDP.
C)not affect Ghanaian GNP, but would increase Ghanaian GDP.
D)have no affect on either Ghanaian GDP or GNP.

Question

Quizplus · Accepted Answer

GDP measures the value of goods and services produced within a country's borders, so the factory's production increases Ghanaian GDP. GNP measures the value of goods and services produced by a country's residents, so the profits from the factory, being owned by a U.S. company, would not significantly increase Ghanaian GNP.

Suppose US