GNI

Question 1

Define GNI

Answer 1

• total income earned by a country’s factors of production, regardless of where they are located, over a given time period (typically one year)

Question 2

What is the formula for GNI ?

Answer 2

• GNI = GDP + net income from abroad

Question 3

What is the formula for net income from abroad ?

Answer 3

• net income from abroad = income inflows from abroad - income outflows paid abroad

Question 4

Define income inflows

Answer 4

• earnings from domestic-owned factors of production located abroad

Question 5

Define income outflows

Answer 5

• earning from foreign-owned factors of production located domestically