If American firm Boeing sets up a factory in China, then the GDP figure for China _____ include those profits and the GNI _____.
A) would; would as well
B) would; would not
C) would not; also would not
D) would not; would
E) would; would only measure actual sales

Question

Quizplus · Accepted Answer

GDP (Gross Domestic Product) measures the value of goods and services produced within a country's borders, so it would include the output of Boeing's factory in China. GNI (Gross National Income), however, measures the income earned by a country's residents and businesses, including those abroad, but it would not include the profits of a foreign-owned factory like Boeing's in China, as those profits are repatriated to the US.

If American Firm Boeing Sets Up a Factory in China