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If a country's Gross Domestic Product (GDP) is greater than its Gross National Product (GNP), it implies that the country: (a) Is a net exporter. (b) Is a net importer. (c) Has a trade surplus (d) Has a trade deficit?
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If a country's Gross Domestic Product (GDP) is greater than its Gross ...
Explanation:
When a country's Gross Domestic Product (GDP) is greater than its Gross National Product (GNP), it implies that the country is a net importer. This can be explained through the following points:
1. Difference between GDP and GNP:
- GDP represents the total value of all goods and services produced within a country's borders in a specific period, regardless of the nationality of the producers.
- GNP, on the other hand, includes the total value of all goods and services produced by a country's residents, both domestically and abroad.
2. Significance of GDP being greater than GNP:
- If a country's GDP is greater than its GNP, it means that the country is earning more from the production activities within its borders (GDP) than it is spending on production activities abroad (GNP).
- This indicates that the country is importing more goods and services from other countries than it is exporting.
3. Implications:
- A country with a GDP greater than its GNP is running a trade deficit, meaning it is importing more than it is exporting.
- This can have economic implications such as a negative impact on the country's balance of payments, currency depreciation, and potential increase in debt levels.
In conclusion, when a country's GDP is greater than its GNP, it signifies that the country is a net importer and has a trade deficit.
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If a country's Gross Domestic Product (GDP) is greater than its Gross National Product (GNP), it implies that the country: (a) Is a net exporter. (b) Is a net importer. (c) Has a trade surplus (d) Has a trade deficit?
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If a country's Gross Domestic Product (GDP) is greater than its Gross National Product (GNP), it implies that the country: (a) Is a net exporter. (b) Is a net importer. (c) Has a trade surplus (d) Has a trade deficit? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about If a country's Gross Domestic Product (GDP) is greater than its Gross National Product (GNP), it implies that the country: (a) Is a net exporter. (b) Is a net importer. (c) Has a trade surplus (d) Has a trade deficit? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for If a country's Gross Domestic Product (GDP) is greater than its Gross National Product (GNP), it implies that the country: (a) Is a net exporter. (b) Is a net importer. (c) Has a trade surplus (d) Has a trade deficit?.
If a country's Gross Domestic Product (GDP) is greater than its Gross National Product (GNP), it implies that the country: (a) Is a net exporter. (b) Is a net importer. (c) Has a trade surplus (d) Has a trade deficit? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about If a country's Gross Domestic Product (GDP) is greater than its Gross National Product (GNP), it implies that the country: (a) Is a net exporter. (b) Is a net importer. (c) Has a trade surplus (d) Has a trade deficit? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for If a country's Gross Domestic Product (GDP) is greater than its Gross National Product (GNP), it implies that the country: (a) Is a net exporter. (b) Is a net importer. (c) Has a trade surplus (d) Has a trade deficit?.
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