When an Australian-owned firm operates in South Korea, the profits that this Australian firm brings back...
When an Australian-owned firm operates in South Korea, the profits that this Australian firm brings back to Australia are included in the Australian ______ and the South Korea ______.
1. GNP; GDP
2. GDP; GNP
4. GDP; GDP
5. GNP; GNP
Homework Answers
option A) GNP & GDP
GDP includes value of all goods & services , that are Produced domestically
& GNP= gross national product
GNP = GDP + net income receipts from abroad
Since the profits are not earned in Australian domestic territory, so it will not be included in GDP, rather it will be part of GNP
Similarly for South Korea, as Production has taken place in it's territory, so it is included in its GDP
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Part 2:
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