Which of the following is an example of an activity that would change the GNP of Country X, but not the GDP?
A foreign company buys and sells refrigerators inside Country X
Country X builds a factory and sells computers in a foreign country
A foreign visitor buys a summer home at the beach in Country X
A clothing company from a foreign country builds a factory and sells clothing inside Country X
Economics - Financial Markets
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Wouldn't it be: Country X builds a factory and sells computers in a foreign country
Number 2, as (GNP) is the market value of all products and services produced in one year by labour and property supplied by the residents of a country. Unlike Gross Domestic Product (GDP), which defines production based on the geographical location of production, GNP allocates production based on ownership.
Key Words being RESIDENTS OF A COUNTRY
all the others are related to foreign things
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Oh well thank you very much! Can you help check two more of my answers?
Ok I posted it.
1 - b.
This is assuming the restaurant is owned by citizens of country X.
2 - b.
In this case, there is no change in domestic product, but national product increases, as the nationally-owned country is getting revenue.
3 - impossible to answer.
To find out per-capital GDP, we need to know not only population but also (dun dun dun) GDP. We have no numerical indication of GDP, so we cannot know the per-capita GDP.