An example of how GNP accounts for services provided by foreign-owned capital (and GDP does not) is
A) earnings of a Spanish factory with British owners counts only in Spain’s GDP.
B) earnings of a Spanish factory with British owners counts only in Britain’s GNP.
C) earnings of a Spanish factory counts in Spain’s GNP but are part of Britain’s GDP.
D) earnings of a Spanish factory counts in Spain’s GDP but are part of Britain’s GNP.
E) earnings of a Spanish factory counts in Spain’s GNP but not in Britain’s GDP or GNP.
ANSWER
D
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