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Tags
#cfa-level-1 #economics #economics-in-a-global-context #los #reading-20-international-trade-and-capital-flows
Question
Countries that have large differences between GDP and GNP generally have a large number of [...] (for example, Pakistan and Portugal), and/or pay more for the use of [...] in domestic production than they earn on the capital they own abroad (for example, Brazil and Canada).
Answer
citizens who work abroad

foreign-owned capital

Tags
#cfa-level-1 #economics #economics-in-a-global-context #los #reading-20-international-trade-and-capital-flows
Question
Countries that have large differences between GDP and GNP generally have a large number of [...] (for example, Pakistan and Portugal), and/or pay more for the use of [...] in domestic production than they earn on the capital they own abroad (for example, Brazil and Canada).
Answer
?

Tags
#cfa-level-1 #economics #economics-in-a-global-context #los #reading-20-international-trade-and-capital-flows
Question
Countries that have large differences between GDP and GNP generally have a large number of [...] (for example, Pakistan and Portugal), and/or pay more for the use of [...] in domestic production than they earn on the capital they own abroad (for example, Brazil and Canada).
Answer
citizens who work abroad

foreign-owned capital
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Countries that have large differences between GDP and GNP generally have a large number of citizens who work abroad (for example, Pakistan and Portugal), and/or pay more for the use of foreign-owned capital in domestic production than they earn on the capital they own abroad (for example, Brazil and

Original toplevel document

2.1. Basic Terminology
NP is that GDP includes, and GNP excludes, the production of goods and services by foreigners within that country, whereas GNP includes, and GDP excludes, the production of goods and services by its citizens outside of the country. <span>Countries that have large differences between GDP and GNP generally have a large number of citizens who work abroad (for example, Pakistan and Portugal), and/or pay more for the use of foreign-owned capital in domestic production than they earn on the capital they own abroad (for example, Brazil and Canada). Therefore, GDP is more widely used as a measure of economic activity occurring within the country, which, in turn, affects employment, growth, and the investment environment.

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