Question

My textbook says that
NI(National Income)= GNP-(Net income received from rest of the world)-(Depreciation)-
(Statistical Discrepancy)-(Indirect Business Taxes)-(Business Transfer Payments)
I do not understand why (Net income received from the rest of the world) is subtracted from GNP as the definition of GNP already subtracts this amount. Shouldn't NI=GNP-(Depreciation)-(Statistical Discrepancy)-(Other adjustments)?

Answer 1

Net income received from the rest of the world is subtracted from GNP, because it is the income received by national producers that work in other countries.