Question

suppose that there is only two small countries in the world. Ascot, with a population of 36,400 people, and Delwich with a population of 26,000 people Ascot GDP is equal to $180 million while Delwich’s GDP is $288 million. Delwich’s GNP has been estimated to be equal to $308 million. the revenue earned by firms that operate in Delwich but are headquartered in Ascot is equal to $40 million.

Answer 1

$GNP= GDP+$ net income from abroad

$GNP-GDP = \$308million -\$288million = \$20million$

now to calculate $GNP$

$GNP = GDP +$ (net factor income that is from abroad $-$ to abroad

$= \$180million + (\$20million - \$40million)$

$\$180million - \$20million = \$160million$