Why Would the Opening of a New Canadian-Owned Factory in Egypt

question 68

Multiple Choice

Why would the opening of a new Canadian-owned factory in Egypt tend to increase Egypt's GDP more than it increases Egypt's GNP?

• A) Some of the income from the factory accrues to people who live in Egypt.
• B) GDP is income earned by residents only, whereas GNP is income earned by residents and non-residents.
• C) All of the income from the factory is included in Egypt's GDP, but not all is included in GNP.
• D) Foreign direct investment is part of GDP, but it is not part of GNP.

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