Question

Suppose U.S.-based Intel Corporation builds and operates a new computer chip factory in Ghana. Future production from such an investment would a. increase Ghanaian GDP more than it would increase Ghanaian GNP. b. increase Ghanaian GNP more than it would increase Ghanaian GDP. c. not affect Ghanaian GNP, but would increase Ghanaian GDP. d. have no effect on either Ghanaian GDP or GNP.

Answer 1

a. increase Ghanaian GDP more than it would increase Ghanaian GNP.

Step-by-step explanation:

Gross Domestic Product (GDP) can be described as the monetary value of all commodities produced within a country during a specific period. GDP are produced using the means of production owned by both the citizens and foreigners within the country.

Gross national product (GNP) can be described as an estimate of total value of all the final commodities produced in a given period using the means of production owned by the citizens of that particular country.

Since the new computer chip factory in Ghana is a foreign direct investment (FDI) owned by the U.S.-based Intel Corporation, future production from such an investment would therefore increase Ghanaian GDP more than it would increase Ghanaian GNP.