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

Question 68

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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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