Suppose a country has many of its citizens temporarily working in other countries, and many of its firms have facilities in other countries. Furthermore, relatively few citizens of foreign countries are working in this country, and relatively few foreign firms have facilities in this country. In these circumstances, which would you expect to be larger for this country, GDP of GNP?
What will be an ideal response?
Answer: GNP would be larger than GDP. The country has relatively more of its firms and residents working in other countries.
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