8 International Comparisons

Compare GDP and GNP asmeasures for economic growth in a country.

Which of the following statements is true when GDP is much lower than GNP?

• a.)
• Foreign direct investment is more significant than production abroad.
• b.)
• The economy is in a trade deficit position.
• c.)
• The economy is strong.
• d.)
• There may be a lot of overseas production by residents.